USD: consumer sentiment dips a little following expectations of rising inflation

The key release for the US on Friday was the University of Michigan’s consumer sentiment. In October, the figure was the strongest it has been since January 2004 at 100.7. However, in November, it dipped to 97.8 against an expectation of 100.7.

The fall was mainly attributed to consumers expecting inflation to rise over the course of the next year. The dollar weakened against the euro and sterling on Friday, although this is unlikely to be because of the Michigan consumer sentiment reading.

The beginning of the week is relatively quiet for the US, but on Wednesday we will see the inflation rate and retail sales for October. On Thursday we will see the jobless claims, as well as industrial and manufacturing numbers. Finally, on Friday we will see the building permits and housing starts for October. Neither of these are likely to have too much bearing on dollar movements.