Following the US Federal Reserve meeting minutes on Thursday, the US dollar weakened in response to the dovish views on a rate rise – however, these losses were soon wiped off thanks to weak trade balance data from the UK. Federal Reserve member Dudley backed up previous statements on Friday promoting the idea of a rate rise this year.
With banks shut today due to Columbus Day, attention will turn to both Wednesday and Thursday. Wednesday will see Key Retail Sales figures released, and this is expected to be a negative figure for the first time in three months; producer inflation data is also released on Wednesday and expected to post a negative figure. Thursday has the release of Consumer inflation – and forecasts expect to see negative inflation for the second consecutive month. If these results are released as expected, we may well see talk regarding an interest rate rise this year be pushed back to 2016 and weaken the US dollar further. This week will finish off with Industrial production on Friday – also expected to post another disappointing figure – alongside consumer sentiment, which is expected to show the only positive signs for the week with an increase.