With import prices falling earlier last week, issues surrounding inflation abounded. For the time being, Consumer Price Index (CPI) data – an indicator of inflation – came out as expected, showing a mild increase. Retail sales figures boosted US Dollar strength in the early afternoon on Friday, showing a two-month high. Industrial production data which followed also contributed to the US dollar’s two-month high. This was despite Consumer Sentiment dropping to 10-month lows.
This week, we can expect another quiet week with minimal data releases. Tuesday will see the release of Building Permits data, which is expected to show a small increase on the previous month. The weekly Unemployment Claims figures on Thursday is expected to show yet another stable figure, and on Friday the Flash Manufacturing Purchasing Managers’ Index (PMI) should show continued growth in the sector. Any surprises could cause fluctuations in US dollar markets, as could any further Brexit-related developments in the UK.
If you are looking to buy or sell US dollars, we suggest contacting your trader now for live rates, news and currency purchasing strategies.