The US dollar had a disappointing day yesterday, as worse-than-expected data dampened some of the speculation over interest rate rises in the US. The main data of the day were the retail sales figures, and these showed an unexpected decline, the worst in almost a year. As such, investors were less enthusiastic about interest rate rises occurring sooner, which caused the dollar to fall against most of its partners, notably to a four-week low against the Japanese yen. The currency had extended its nine-year high against the euro earlier in the day, but this negativity saw it lose ground.
Today sees a number of important figures from stateside that could extend or reverse this trend, depending on their outcome. First up is some inflation data in the form of the Producers’ Price Index, which will give a good indication to the wider economy’s health. This will be accompanied by data from the ever-important labour market, in the shape of the unemployment claims. Some support could be found from the less influential Empire State Manufacturing Index, before the Philadelphia Federal Reserve release their own variant of this. As such, investors will be looking to the US dollar to rebound from yesterday’s disappointment with some stronger figures and to continue its strong start to the year.