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US dollar stabilises into the weekend

After sizable losses so far this week the US dollar has seemingly found some traction as it attempts to arrest the recent decline. USDJPY (+0.38%) has moved back above the 115 handle after some early weakness and is on track for its first higher daily close of the week.

The resurgence in the greenback is thanks in part to some supportive data from across the Atlantic with both US retail sales and PPI figures coming in above forecasts. AUDUSD (-0.04%) and NZDUSD (-0.03%) are little changed after strong gains in recent sessions with the former falling back below the 0.75 handle. The other main economic release of the afternoon saw a slightly disappointing University of Michigan consumer sentiment number, but the inflation expectations component did beat forecast to mitigate the  negative impact on the buck. 

 In the commodity space Gold (+0.01%) and Silver (+0.03%) are both little changed on the day with both precious metals selling off after the retail sales and PPI releases but then recovering into the European close. It should be noted that Gold has fallen back below the $1200/oz level though. After two days of gains Brent Oil (-0.82%) is on track to lose some ground on the final trading session of the week, falling back below the $56 handle.

Stocks have recovered some of yesterday’s gains and are looking to end the week on the up with the DE30 (+0.45%) and EU50 (+0.55%) both rising. The UK100 (+0.01%) is little changed but stateside there are more gains with the US500 (+0.30%) around 6 points from last Friday’s record high.  

Next week begins with a bank holiday in the US for Martin Luther King day. Tuesday sees UK CPI data released on Tuesday before PM Theresa MAy is set to give a speech outlining her vision for the Brexit. There’s more UK data at the same time (9:30 AM GMT) on Wednesday with the latest employment figures before US CPI at 13:30. The afternoon is busy on the economic calendar with the Bank of Canada meeting at 3pm and press conference with Poloz and hour later. Fed chair Yellen is set to speak on Wednesday evening at 8pm. Thursday has Australian employment data in the early hours before the ECB rate decision at 12:45pm. Draghi’s press conference will follow 45 minutes later as usual. Crude oil inventories are out a day later than usual at 4pm on Thursday due to the US bank holiday on Monday. Friday sees another speech from Yellen, Chinese GDP data, Uk retails sales and Canadian retail sales and CPI. 


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