The US dollar has had a mixed week so far, with internal and external forces impacting on the currency. The week started strongly thanks to improved retail sales, helping the dollar to rise against most other currencies, aside from sterling. Tuesday saw further positive data for the US economy and dollar, with-better-than expected inflation data, which by 0.2% in March. However, gains from this were pared down thanks to less-than-impressive Empire State Manufacturing Index figures, as well as further unrest in Ukraine. Yesterday then saw varied results, as events elsewhere largely governed market movements. The dollar dropped to its lowest point in almost a week against sterling, thanks to positive data from the UK. However, it rose against the Japanese yen thanks to better than expected Chinese growth figure which reduced demand for safer assets like the yen.
Today rounds off the shortened week with some important labour data. This will be supported by the manufacturing index from the Philadelphia Federal Reserve; investors will be looking for better results than earlier in the week.
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