The U.S. Leading Economic index rose in the month of May after rising in April. The LEI rose 0.2 percent, indicating economic growth is expected to continue through the end of 2018, noted Wells Fargo in a research report. But, the recent deceleration seen in the index’s growth implies that economic activity is unlikely to accelerate. Detractors from the index were related to the labor market and construction. Jobless claims and building permits cut the index by 0.06 and 0.14 percentage points, respectively.
The remaining seven components contributed positively to the headline index, led by ISM new orders, implying widespread strength throughout multiple sectors of the economy. In spite of the seemingly unstoppable ascent of the index, the growth in the last three months is the weakest since September 2017. The recent easing in the index’s growth implies future economic growth would follow suit, stated Wells Fargo.
At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -66.2938. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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