Currency Note US Dollar

US retail sales disappoint

By Smart Currency August 14th, 2014

The US dollar saw mixed results yesterday, thanks to events both stateside and elsewhere. While data from the US was largely disappointing, a bleaker outlook in the UK allowed the dollar to rise to its highest point in four months against sterling gaining nearly one and half cents on the day. Data from the US then centred on the retail sales figures, which were reported at worse-than-anticipated levels. As a result, speculation over the possibility and timescales of a US interest rate rise cooled, reducing the impetus for further dollar strength.

Today sees the focus shift to the labour market, as unemployment claims data is due. Investors will look to this to gain back some support for interest rate rises, as positive figures in this area are highly influential for such a decision. Some import price data could also support movements in US dollar markets, as investors consider the long term prospects for the US economy.