Dollar awaits industrial production, after strong empire manufacturing

New York Empire state manufacturing data registered decent gains at 3.09 compared to prior -1.19. Dollar gained post data pushing Euro towards 1.132. Further gain in dollar is pretty likely given its bounce back from four month low. However dollar still remains victim to weak economic dockets from US.

Dollar is now awaiting industrial production to be released at 13:15 GMT.

• Industrial production has been gaining at rapid pace since mid-2013, however growth has started floundering this year. In March growth dropped -0.6% m/m after dropping by -0.3% in both January and December.

Market participants would be observing whether the drop in growth has been a temporary phenomenon, driven by bad weather or is it more trending.

Dollar index is currently trading at 94, up by 0.65% today and better than expected industrial data would push dollar higher. However any prospect of sharp gains remains limited given end of the week, however positive data would help dollar close the week on positive note.