020 7898 0500The US dollar had a mixed day to end last week, with varying data and outlook affecting the markets. With little of particular significance, the dollar stayed within a narrow range against most of its major peers. Data on the day was mostly positive, as the building permits figures were as expected and the consumer sentiment ahead of expectations. However, the dollar failed to make significant ground thanks to increasing negativity over the longer-term outlook. With continued reaction to Federal Reserve member Bullard’s cautionary words that quantitative easing should be extended, investors looked to central bank Chair Janet Yellen as she spoke in Boston to see if she commented on policy. However, she discussed neither policy nor economic otlook, leaving little for investors to dissect.
This week starts slowly for the dollar, with the first event not due until mid-week. Wednesday will see the key inflation data in the form of a Consumer Price Index (CPI), which is significant given the recent caution. Thursday returns to the labour market, with the unemployment claims figure scheduled as the only major release, before Friday gives us new home sales figures. With data thin on the ground, these could prove important for the week, as investors will scrutinise these results for clues as to the possibility of future prospects.
