The US Economy is Moving

Following the US economy one can find a lot of opportunities in US indices such as Dow, S&P 500 and NASDAQ that hit record highs every single day or even trading on any FX US Dollar. As of now we did not experience any shocking data releases. Optimism over prospects for sustained strong global growth and improved corporate earnings have helped share markets rally at the start of 2018.

The surprises come from the US Administration decisions that are at times unpredictable thereby creating volatility while putting pressure on the US Dollar. Now the Congress needs to pass a spending bill by the end of Friday to avoid a government shutdown. And that is why the US Dollar is bleeding since the start of 2018.

US officials today are reporting some important leading indicators of the economy at 13:30 GMT. Forecasts show ahead of today’s release that U.S. housing starts and building permits probably slipped in December for the first time in three months as frosty winter weather delayed work. In the case where the actual reading would be in line with the expectations or better the US Dollar is expected to step on the breaks and start finding a support waiting for a retracement. On the other hand, should data be below estimates it could trigger more fear in the greenback.

At the same time, the Philadelphia Fed Manufacturing Index is reporting, where the data is compiled from a survey of about 250 manufacturers in the Philadelphia Federal Reserve district. Manufacturing is also a leading indicator that can have a big effect on the US Dollar and traders will be paying closer attention to their Economic Calendar.

Apple Inc. said it would pay a one-time tax of $38 billion on its overseas cash holdings and ramp up spending in the U.S., as it seeks to emphasize its contributions to the American economy after years of taking criticism for outsourcing manufacturing to China.

Apple is the world’s most valuable publicly traded company and on Wednesday it published a statement that was full of big figures reflecting Apple’s current pace of spending. It is expected to open a new campus as part of a five-year, $30 billion U.S. investment plan and will make about $38 billion in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of a tax cut signed by U.S. President Donald Trump.

The company has been under increasing pressure to make U.S. investments since the 2016 presidential campaign, when Trump targeted the iPhone maker for making products in Asian factories.

Summing up everything, Apple on Wednesday estimated it would spend $350 billion in the United States over the next five years. Trump described the move by Apple as a victory for his efforts. "I promised that my policies would allow companies like Apple to bring massive amounts of money back to the United States. Great to see Apple follow through as a result of TAX CUTS," Trump wrote on Twitter.