It was another tough day for the US dollar as the US continued to struggle to recoup some strength during the slowdown they are currently experiencing. Poor data again on Wednesday did not help, with retail sales showing no signs of growth and below expectations – poor retail sales figures and low inflation mean the US could be at risk of possible deflation, which would add to the current slowdown. Due to this, the US dollar continued to trade above the 1.57 level against sterling and the 1.13 level against the euro.
Inflation data due today is expected to show a slight decrease on the previous months, with the weekly unemployment claims figure expected to increase. These are telling signs that the US economy may not be near to a recovery following the recent slowdown.