Strong August US Data Boosts Hopes of Early Fed Policy Tightening
The greenback retreated from weekly highs on Friday however advanced in the week as strong retail sales reinforced expectations of that recovery will continue and the Fed may be more inclined to tap the breaks on QE earlier than expected.
US retail sales unexpectedly rose 0.7% in August from the previous month, the Commerce Department said. Markets expected that sales will decline month-on-month due to the hit on consumer mobility and services sector caused by outbreak of the delta strain.
The Philadelphia Fed business climate index jumped to 30.7 points in September from 19.4 points in August.
The activity in the foreign exchange markets on Friday was rather low. Traders were reluctant to enter new positions ahead of a number of important central bank meetings next week, including the Fed, Bank of Japan and Bank of England.
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