The US dollar has garnered mixed fortunes this week, with data from the country combining with wider world events to move the markets. The week started slowly on the data front, resulting in little significant movement from the currency. The job openings figure aided the currency by beating its expectations, allowing the dollar to revisit recent highs against the euro. However, this trend was reversed mid-week as poor retail sales figures weighed down the currency. This result was the worst in nearly a year, resulting in dampened speculation over whether the Federal Reserve will raise interest rates sooner rather than later.
Yesterday was largely more positive in key areas, despite varying data. The most significant was inflation data in the form of the Producers’ Price Index, which met its expectation. The unemployment claims and Philadelphia Federal Reserve’s Manufacturing Index were both behind their forecasts, but the Empire State’s version was significantly ahead. This, along with the events in Switzerland, saw the dollar rise against sterling and the euro, but lose out against the other safe haven of the Swiss franc.
Today holds some more key inflation data, with the key indicator, the Consumer Price Index (CPI), due. Some smaller pieces – including industrial production data – could support this, while later in the afternoon there will be consumer sentiment data from the University of Michigan.