Business investment in the US has been up over the first 5 months of 2017 however there now appears there has been a recent slowdown.
Donald Trump appointment as US President initially created a lot of optimism among businesses, especially as his aim was to improve the economic condition of the US economy. President Trump is now possibly seen as a bit of a risk, having miss-handled several recent political situations. The US Federal Reserve has previously forecasted at least one more interest rate hike during 2017, however this now looks under threat.
Economic data that could impact the US Dollar this week
On Wednesday we should see Purchasing Managers Index data which is expected to show a small improvement in July from June. It seems unlikely it will have a major effect on the Dollar as the reading was high last month and has been for some time. If there the data comes out weaker than expected data then that could definitely start to raise concerns for investors.
North Korea Drama
One thing that needs to be considered with the US Dollar is the potential conflict between the US and North Korea. When there is major uncertainty the US Dollar is known to strengthen as it is considered a safe haven currency. Due to the fact there are so many influencing factors and the volume is so great your assets can be protected by the mass. In turn this means wars for example can often have a positive impact on the US Dollar.
Whilst Trump and North Korea seem to be flexing muscles with minimal appetite for an actual conflict if that did happen then there would be considerable movements.