For two weeks in a row, the dollar moved up on Monday. In the first case, it was an extension of the recovery that was triggered by the good Non-Farm Payrolls report.
That dollar correction ended with the not-so-great inflation numbers on Friday. Nevertheless, the dollar apparently likes Monday and is enjoying a recovery.
What’s in store for the greenback? The most important events of the week are scheduled earlier: retail sales on Tuesday and the Fed meeting minutes on Wednesday.
Fridays: the dollar is not in love
Yet Friday also has an interesting event in store. The University of Michigan’s consumer sentiment measure will have the last word of the week. It is not as important as the previous events and does not live up to its hype about predicting retail sales., but the timing could make a difference. We
But the timing could make a difference. We have seen how the JOLTs jobs report had a significant impact on the dollar despite being a lagging indicator. The empty calendar around it and the magnitude of the surprise were sufficient to trigger another leg up for the dollar.
Currently, the greenback suffers from a negative bias. So, if we’ll see a miss on that number, the dollar could fall.
What do you think?
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