Dollar Mixed Ahead Of Retail Sales, Inflation
The dollar was looking for direction versus other major currencies Friday morning in New York, ahead of government figures on retail sales and inflation for December.
Stocks were lower in global markets this morning and US futures lagged, boosting safe haven demand for the buck.
For the seventh time in a calendar year, China's central bank is attempting to get a handle on rising prices by raising the amount of money banks must keep on reserve.
China's inflation rate hit 5.1 in November, its highest in more than two years.
The dollar steadied near $1.3350 against the euro, having touched a monthly low near $1.3450 in overnight action. Only five days ago the dollar was sitting at a 4-month high of 1.2873.
European Central Bank President Jean-Clause Trichet signaled yesterday that policy makers are becoming concerned with inflation in the euro area, setting the stage for interest rate hikes.
The buck paused near yesterday's monthly low of $1.5883 versus the sterling.
The dollar battled back to C$0.9975 against its Canadian counterpart, having dropped more than a cent below parity to its lowest in two years earlier this week.
The dollar pared some of its modest weekly losses against the yen this morning, improving slightly to Y82.90.
An onslaught of economic data from the US starts at 8:30 am ET, with the release of retail sales figures for December. Economists estimate a 0.8% increase in retail sales and a 0.7% climb in retail sales excluding autos.
At the same time, the government will reveal its latest figures on inflation. The consensus estimates call for a 0.4% increase in the consumer price index, while the core consumer price index that excludes food and energy is likely to have risen 0.1%
The industrial production report of the Federal Reserve is due out at 9:15 AM ET. Economists estimate 0.5% growth in industrial production for December, while capacity utilization is expected to come in at 75.6%.
The preliminary report of the Reuters/University of Michigan's consumer sentiment survey for January is scheduled to be released at 9.55 AM ET. The consumer sentiment index is expected to increase to 75 from December's 74.5.
The Commerce Department is scheduled to release its business inventories report for November at 10 AM ET. The report summarizes the results from the monthly retail trade, wholesale trade and factory goods orders surveys. The report is expected to show a 0.7% increase in business inventories for the month.
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