John Williams, the San Francisco Fed President was much more hawkish and has stated that solid economic growth in the US last year and the possibility of a further boost from Republican tax reforms would support at least three hikes.

The next Fed meeting is due at the end of the month with investors hoping it will give a further insight into the Fed’s stance on interest rates.

US Retail Sales and CPI data could influence the Dollar

US retail sales measures the total receipts of retail stores. It gives a clear indication of consumer spending and as this is key to the health of an economy can cause volatility. There is expected to be a 0.4% decline, but considering the positivity surrounding US economy at present I am going to go against the grain, I think the drop will not be so severe which could strengthen the greenback.

By measuring the changing price of a hypothetical basket of goods, the Consumer Price Index (CPI) provides data on the price movements in an economy.

CPI could influence USD, as it is used as a key indicator for inflation which affects rates of exchange. There is expected to be little movement from the previous month, but if the figures go against expectations of a slight decline we could see swings in Dollar value.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me here.

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