020 7898 0500Consumer Sentiment dropped below what was forecast on Friday of last week. However, its overall effect on the performance of the US dollar was limited. In fact, we saw the US dollar strengthen moderately against a number of major currencies on Friday.
There are plenty of important data releases due out this week, starting with inflation data and existing home sales figures on Tuesday. Whilst the Chair of the Federal Reserve Janet Yellen has been explicit about the winding down of the US bond-buying programme, uncertainty remains over when interest rates will be raised. Data such as the Consumer Price Index (CPI) released on Tuesday will play a role in determining when indeed this will occur. Similarly, the health of the labour market is an important factor in defining ongoing policy and the unemployment claims figures released on Thursday will have the potential to cause movements in US dollar markets. The week is rounded off on Friday, when we expect the release of Core Durable Goods Orders data, which has the potential to impact US dollar strength towards the end of the week.
