The US dollar finished off the week with largely positive results, although its overall performance was mixed. The currency rose to the highest level in six years against the Japanese yen, while also making gains against sterling, thanks to positive US retail sales figures rising by the most in four months. This provided further evidence of a strengthening economy, adding to speculation and pressure for the US Federal Reserve to raise interest rates. Despite this, the dollar lost out against some currencies, including the euro. Consumer sentiment data from the University of Michigan provided some more encouragement to the dollar by coming out higher than expected.
This week starts off with a few medium-impact releases today, including the Empire State Manufacturing Index, as well as industrial production data. Tomorrow then holds the Producers’ Price Index, before Wednesday holds a raft of crucial data, starting with inflation figures in the form of the Consumer Price Index. The evening will then see the US Federal Reserve taking centre stage, with the Funds Rate and accompanying statement and press conference. Given the recent speculation over interest rate rises, investors will be keen to hear any clues regarding any related plans. Thursday keeps up the heat, with building permits, unemployment claims and Manufacturing Index data. Amidst this, US Federal Reserve Chair Janet Yellen will be speaking, following on from the day before. This is the last major activity for the week, with a quiet Friday on the horizon.