Last week’s high: $1.3675
Last week’s low: $1.3461
US Dollar Can’t Hold Gains even after Strong Inflation Data
Friday saw US core inflation surprise with an uptick to 1.8% against forecasts of a hold at 1.7%, boosting the odds of an interest rate hike from the Federal Reserve. But anticipation ahead of the data release had weakened USD and many commodity currencies, making GBP an appealing asset. By the time the data was released, Sterling had become too attractive an asset and the US Dollar lost around -1%.
USD Outlook: Fed Speeches to Dominate in Quiet Data Week
The coming week is unusually quiet in terms of US economic data, with Friday’s University of Michigan sentiment index the only tier-one release on the calendar.
This means the major developments will be Fed speeches; officials Charlies Evans and Loretta Mester are due to speak on Wednesday.
Sturdy odds of an interest rate hike taking place in March could also provide some underlying support for USD.
14:15 USD Industrial Production (MoM) (DEC)
20:00 USD Fed’s Evans Speaks on Economy and Monetary Policy
21:30 USD Fed’s Mester Discusses Monetary Policy Communication
13:30 USD Housing Starts (MoM) (DEC)
13:30 USD Building Permits (MoM) (DEC)
3:30 USD Initial Jobless Claims (JAN 13)
13:30 USD Continuing Claims (JAN 06)
15:00 USD U. of Mich. Sentiment (JAN P)
If you need to make a USD transfer but don’t have an account with us, click here to get started.
Senior Currency Broker
T: 01442 892 065