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US Dollar Analysis and News
- U.S. retail sales and FOMC minutes unlikely to drive the dollar
- Dollar finds support on dips
US Retail Sales and FOMC Minutes Unlikely to Move the Needle for the USD
Another downturn for large risk assets is in full swing during the summer lull. However, upcoming U.S. retail sales data and the latest FOMC meeting minutes will attract market attention. But first, U.S. retail sales growth was weak throughout the year, with growth reflecting higher prices. So while overall rates are likely to remain flat, this is unlikely to be a big move for the dollar. The short-term focus will be next week’s Jackson Hole Symposium.
Therefore, the dollar should continue to rise, especially against the euro and the pound. The double-digit rise in UK CPI today is another reminder that higher-than-expected inflation figures don’t necessarily mean sterling. This is because money markets are almost fully priced at 50 basis points and the BoE is unlikely to rise above 50 basis points. Sterling remained lower, and the gains slowed down.
US Dollar Chart: USD Finding Support on Dips
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