The US dollar continued its losing streak this week following disappointing job data and retail sales from the US.
The number of people filing for jobless claims in the US last week rose by 8,000 instead of falling by 1,000. Also retail sales in the US unexpectedly fell by 0.4% in January; with the bad figures being attributed to the recent bad weather in the US.
Also given Janet Yellen’s, Head of the Federal Reserve, comments on Monday with regards to only tapering quantitative easing with regards to economic data, looks like market are probably pricing that there could be bad data for Februarys figures given the recent cold snap. As a result this could delay tapering quantitative easing, which is why we are seeing the US dollar weaken off.
GBPUSD is presently at the highest level since May 2011.
The euro has had support today following data from France, Germany and the Eurozone as a whole showing that all three economies have grown by 0.3%, 0.4% and 0.3% respectively; all above market expectations. EURUSD as a result is at a three week high, whilst gains against the pound have been muted.
14.15pm – USD – Industrial Production (Jan): Expected to remain at 0.3%.
14.55pm – USD – Reuters/Michigan Consumer Sentiment Index (Jan): Expected to fall to 80.6.