The dollar was weak against the pound and the euro at the end of last week. Despite this, retail sales rose 0.3% from a month earlier in October 2019, reversing a 0.3% drop in September and beating market expectations of 0.2%. This was driven by motor vehicle sales and higher gas prices.
Industrial production figures showed a 0.8% drop in output month-on-month, which was the steepest contraction in industrial activity since May 2018. Manufacturing production also fell 1.5% year-on-year, which was the biggest fall in output since May 2016.
There have been reports that the US and China had “constructive” discussions over the weekend about each side’s core concerns on the phase one trade deal. Both sides agreed to stay in close communication, however, the dollar is still low as nothing concrete was decided.
This week, we’ll see the release of FOMC minutes on Wednesday and PMI figures on Friday.
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