- European session review: USD retreats from three-week highs
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European session review: USD retreats from three-week highs
| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|---|---|---|---|---|---|
| 06:00 | United Kingdom | Retail Sales (YoY) | August | 1.9% | 2.7% | 0% |
| 06:00 | United Kingdom | Retail Sales (MoM) | August | -2.8% | 0.5% | -0.9% |
| 08:00 | Eurozone | Current account, unadjusted, bln | July | 24 | 30.2 | |
| 09:00 | Eurozone | Construction Output, y/y | July | 4.1% | 3.3% | |
| 09:00 | Eurozone | Harmonized CPI | August | -0.1% | 0.4% | 0.4% |
| 09:00 | Eurozone | Harmonized CPI ex EFAT, Y/Y | August | 0.7% | 1.6% | 1.6% |
| 09:00 | Eurozone | Harmonized CPI, Y/Y | August | 2.2% | 3% | 3% |
USD slipped against most of its major rivals in the European session on Friday, receding from three-week highs it approached the day before, helped by a surprisingly strong U.S. August retail sales data.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, decreased 0.14% to 92.80.
The official data showed on Thursday the U.S. retail sales unexpectedly increased in August, posting a 0.7% m/m gain despite expectations of a 0.8% m/m drop. In addition, the September Philadelphia Fed Index came in much better than expected with a reading of 30.7 versus economists’ forecast of 18.8, and the 4-week moving average for both initial claims and continuing claims showed a continued decrease last week.
The latest round of data increased bets on the strength of the U.S. economic recovery and earlier tapering of asset purchases by the Federal Reserve, which helped lift the DXY to its three-week highs.
Investors’ focus is now shifting towards the Fed’s two-day policy meeting, set to begin on September 21.
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