17/07/2017 - Dollar Falls as US Retail Sales Disappoint  

USD

The Dollar lost significant ground on Friday after a pair of key data releases pointed to waning inflation and consumer weakness, which economists believe may delay the Federal Reserve’s next policy move.

The data pushed GBPUSD to its highest level for nearly a year after the rate of inflation over the past 12 months slowed in June  and retail sales fell 0.2% last month, suggesting the economy has not rebounded as strongly in the spring as bullish investors had been hoping.

Economists believe the disappointing data could change expectations for when the Federal Reserve will change interest rates, and the idea of a slower path is contributing to weakness here and adding to strength in other currencies, particularly ones tied to commodities. 

The news further compounded the Dollar's struggles after comments perceived to be dovish from Fed Chairwoman Janet Yellen, who reiterated the central bank’s plan to raise interest rates further, but also cautioned that rates don’t need to rise significantly from here.

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