It was a poor end to the week for the dollar as it fell against most major currencies after weak data yet again raised doubts over the Federal Reserve’s decision to raise interest rates later this year.
The consumer price index came in at 0%, – 0.1% below forecast. This, coupled with retail sales falling short of forecast by 0.3%, resulted in the dollar falling to its lowest point against the pound since September 2016. Whether it can claw back some of these losses this week remains to be seen, but any developments in Brexit negotiations could have an effect.
Looking to the week ahead, although there is a steady flow of data covering import and export prices and unemployment claims, it’s fairly quiet on the data front for the dollar; political drivers and uncertainties are likely to dictate the flow of the market.
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