020 7898 0500The US dollar had a subdued start to the week, trading within a narrow range before Tuesday brought some more notable movements. Short-term US data was disappointing, as the monthly retail figure showed an increase of just 1% compared to last month’s 1.5%, but the dollar survived major losses as the three month annualised variant grew by 5.2%, highlighting that the US economy is gaining momentum. Further gains were enjoyed mid-week, as the Producer Price Index was ahead of expectations, with the biggest increase since September 2012.
Yesterday was largely positive, as the inflation figures, unemployment claims, and manufacturing index all managed to surpass expectations. As a result, the dollar gained some good ground, notably hitting a four-week high against sterling. The only downside was disappointing industrial production figures, paring some of these gains. Today, there are two points of interest to round off the week. Firstly, the building permits figure will be released, followed later in the afternoon by the consumer sentiment figure from the University of Michigan.
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