USD: quiet day for the US sees the dollar falls sharply against the euro

With no major releases from the US yesterday, market events were unsurprisingly driven by events elsewhere. Following some positive data from the eurozone, the dollar weakened sharply against the euro and made some slight losses against sterling too.

However, today is much busier for the US with the release of the core inflation rate and retail sales. If these come in better than expected, then it is possible that the greenback can claw back some of yesterday’s losses. On the other hand, if the readings come in lower than anticipated then it could exacerbate its position.

Tomorrow sees the release of the US jobless claims and the industrial production figures. The latter is expected to increase from 1.6% to 2.3%.