Surge in dollar likely to impact US current account adversely

The mining sector's contraction and the stronger US dollar factored in the fall of 0.2% in US industrial production for May month.

The bright note was NAHB homebuilder sentiment, which rose to 59 matching September's nine-year high. This is a steep hike from previous 54.

But the building permits were forecasted to print at 1.11 this time which is a slight decrease from previous 1.14.

NY manufacturing survey also brings down at -1.98 points; new orders were slipped from 3.85 to -2.1.

The astonishing US IP data index suggests the headwinds it faces from the dollar. Because these manufacurers will have huge foreign currency exposure.

In turn with foreign investors being cautious, export volumes are projected to be narrowed as a result of dollar gains.

US trade balance has already evidenced USD 113451 millions of current account deficit in last quarter.

Given the dramatic gains in dollar the US current account data release on Thursday will likely have an adverse impact.