Wednesday was not a good day for the US and its currency, with the US dollar weakening one and half cents against sterling and half a cent against the euro. This was as a result of weak data releases that showed a larger drop in retail sales than expected; and producer inflation falling further into negative territory. Following these disappointing figures, various banks cut their third quarter US growth forecasts.
Today we could look at further negativity for the US, as consumer inflation is expected to worsen against the previous month, posting a second consecutive negative figure. This is followed by the weekly unemployment claims which should post another stable figure. Following a lacklustre day for the US dollar on Wednesday and possibly today, attention will be on US Federal Reserve members in how they feel the recent data releases will affect their decision on an interest rate hike this year.
If you are looking to buy or sell US dollars, now is a good time to contact your trader for live rates, the latest news and to discuss currency purchasing strategies.