The US dollar ended last week with varied results throughout the day, despite some positive data. The retail sales figure was the key release on Friday, and by significantly by beating expectations, helps the US dollar to make gains against the vast majority of its partners. This was supported by better than expected import prices to help drive the currency, although this positivity did not last – by the end of the day the currency had given up most of this ground, despite the consumer sentiment figure also beating expectations. Further late weakness saw the dollar finish low against most, including reaching the lowest level in a week against the euro, but held on to smaller gains against a weak sterling.
This week begins with some smaller releases with the Empire State Manufacturing Index and the industrial production figures released on Monday. The Producer Price Index released on Tuesday will bring the first significant release from the US and on the same day we will also hear from a member of the Federal Reserve. Building permits will be released on Wednesday ahead of the crucial minutes from the most recent FOMC meeting. With interest rate rises still causing varied speculation, any clearer indication as to when we could see a raise in interest rates will cause a significant reaction in the market. A busy Thursday will see more inflation data released in the form of the consumer price index, the weekly unemployment claims figure and the manufacturing sector also contributes with the index from the Philadelphia Fed.