Steven Mnuchin Treasury Secretary has suggested the ongoing strength in the US Dollar was due to the belief in the US Economy. He suggested the US economy was outperforming the rest of the global economies and this was reassuring investors.
Mnuchin offered a slightly different view to Trump who has warned of the dangers of having an overly strong USD and wants to weaken the currency. The Treasury Secretary did warn that short term spikes were not beneficial necessarily but he did not seem to be overly concerned with a strong USD.
He did suggest that the strength really comes down to the business focus of Trump and that his policies could continue to strengthen the Dollar. Businesses look to have put faith in what trumps trying to achieve and this could really help the US and the US Dollar to grow.
New Homes and Baker Hughes Data
Us data for the number of new homes is expected tomorrow and is set to show an improvement from the month of January. Furthermore, the Baker Hughes oil rig count will be released which will provide an indication of the number of wells in production. This can be considered a major indicator for the oil industry with the more rigs the more products being used.
Next week there is a huge amount of data being released which could cause significant volatility for the US. At the moment, any good news for the US will increase the likelihood of several rate hikes this year. There is belief there could be as many as 3 hikes this year with the first coming as soon as March. If that is the case, then strong data is the key.