It has been a fairly slow start to the week for the US dollar, moving on from last Friday’s explosion following the release of much better than expected US jobs data. Tuesday saw the dollar drop sharply against the Japanese yen and a number of its other major peers. The leading contributors to Tuesday’s dollar weakness were the surprise decision by the Greek government to bring forward a parliamentary vote for president to next week. Investor uncertainty was heightened by the Chinese government decision to create new restrictions on collateral for short term loans. This decision strengthened the view that Chinese economic growth is slowing.
Looking to today, it is a fairly quiet day for the dollar and the main focus will be on tomorrow’s retail sales figure. Last month showed positive moment in the US retail market and investors are expecting this to continue this month, with a predicted increase of a 0.4%.