The US dollar finished off a subdued week on Friday, ultimately ending with mixed results across the board. Both of the most important releases of the day came in behind expectations, with both the Producers’ Price Index and the preliminary Consumer Sentiment showing disappointing figures. As such, the dollar failed to garner any late support.
This week’s major releases start tomorrow, with building permits figures, as well as an inflation indicator in the form of the core CPI. Wednesday could then prove the most significant, as the Federal Open Market Committee (FOMC) takes centre stage. The US central bank will announce whether or not the FOMC members voted in favour of continuing to taper its quantitative easing program. Alongside this we may see a change in rhetoric from the central bank regarding future monetary policy as well as new economic projections. Thursday keeps up the activity with existing home sales and the Philadelphia Federal Reserve Manufacturing Index, as well as important labour data in the form of the weekly unemployment claims. This is the last main data from stateside, as Friday winds down with no releases due.
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