020 7898 0500The US dollar struggled at the start of the week, with data from both the US and the rest of the world thin on the ground. As a result, the dollar lost ground in key areas against currencies like sterling, the euro, and a potentially oversold Japanese yen.
This slow downward trend was reversed yesterday, however, as the dollar made ground against the vast majority of its peers. This boost came largely thanks to the retail sales data, which was significantly ahead of forecasts. The figures showed the biggest climb in eight months, which gave investors further evidence of a stronger economy. With the Federal Reserve contemplating their interest-rate increases, any support for the economy is giving investors hope that such a hike will happen sooner rather than later.
Supporting this view was unemployment claims data that also came out better than expected, helping the dollar to end its three-day run of losses. Today sees two influential releases scheduled for the US dollar, starting with the Producers’ Price Index (PPI). As an indicator of inflation, this could have an impact on the markets, and will be followed later in the afternoon by the consumer sentiment from the University of Michigan to give the dollar some final potential movement.
