January 14, 2022

US retail sales data Last USD to rise again!

 Going into the European session, the Greenback dollar remains bleak with the focus of investors now towards the issuance of US retail sales data tonight.

The Federal Reserve policymaker (Fed) continues to voice the Hawkish view to raise interest rates to curb inflation.

When testifying before the US Senate, Governor Fed Lael Brainard said they would be ready to start raising rates once the bond purchasing program ended.

While the Fed Governor, Christopher Waller, said three rate hikes in 2022 were appropriate and the US central bank could start reducing their Balance Sheet by summer.

However, this statement failed to increase US bond revenue and depreciation in Producer Producer Price Index data (PPI) made it difficult for US dollars to get demand by the end of the week.

In the meantime, the euro's currency continues to benefit from the weakness of the USD to be traded higher, seeing price movements approaching the 1.1500 level to break.

The Aussie and Kiwi dollar remained stable although the price movement was seen stopping making an increase, showing it traded horizontally near the height of one month compared to USD.