The dollar remained broadly lower against a basket of other major currencies on Friday, as hopes for progress in Greece debt negotiations continued to support demand for riskier assets.
Those in favour of a strong dollar and keeping an eye on the market for future US dollar strength should ultimately take comfort in a Greek deal for more cash, as that would reduce global uncertainty and give the Federal Reserve more leeway to raise interest rates.
It’s a relatively busy this week data-wise for the US dollar. On Tuesday we will see the release of core retail sales figures, expected at 0.7%, a slight reduction from the previous figure of 1%. PPI data is released on Wednesday – this is likely to see a drop down to 0.2%. Thursday sees US Federal Reserve Chair Janet Yellen discussing semi-annual monetary policy. Finally, on Friday we have the release of CPI data, which is an indicator of inflation. This is expected to stay roughly the same as before – however, a change in the price of goods and services produced could spell short-term trouble for the dollar.