US Dollars Head to First-week Low on Strong Risk Appetite

On Friday, US dollars weakened against its rival currencies as global risk appetite strengthened.

Accordingly, the US dollar index shed 0.10% or 0.09 to $93.87, trailing its plunge of 0.04% to $94.04 yesterday. 

Moreover, the safe-haven currency retreated from its surge since September amid positive economic recovery and soaring energy prices.

Whereas, its initial hike was mainly supported by the expectations on the earlier asset tapering timeline. 

Last Wednesday, minutes from the Federal Reserve’s latest meeting cemented the assumptions and revealed that tapering would likely begin as soon as November. 

Accordingly, investors focused on when the central bank would initiate the increase in interest rate. 

Consequently, money markets posted at 50/50 odds of a 25-basis point rate hike by July next year. 

On the economic data front, traders also kept an eye close to the release of retail sales data today. 

Subsequently, the most significant indicator of consumer spending posted a low forecast of -0.20% from the last rate of 0.70%. 

Also, the estimated core retail sales fell to 0.50% from the August figure of 1.80%. 

Correspondingly, a significant drop from the projected report would pull down the US dollars.

In addition, analysts eyed the Michigan consumer expectations today. 

Meanwhile, the initial jobless claims declined to 293,000 from the experts’ estimate of 319,000, reflecting positive labor data. 

Then, the producer price index (PPI) edged down to 0.50% month-on-month from the expected figure of 0.60%.

Also, its core, which refers to the index of finished goods, tumbled to 0.20% month-on-month from the forecasted data of 0.50%. Accordingly, the PPI is generally bearish to the US dollars. 

Swiss Franc versus US Dollars Decline

Meanwhile, the USD to CHF exchange rate shed 0.03% to $0.92, following its Thursday drop of 0.10%. 

Then, Switzerland’s PPI plummeted to 0.20% month on month from the former data of 0.70%. The recent report is taken as negative for the local currency against the US dollars. 

At the same time, the USD to CAD exchange rate sharply lost 0.19% to $1.24. 

Conversely, the USD to JPY exchange rate gained 0.59% to $114.34, a year low for the yen. 

Similarly, the AUD to USD exchange rate elevated 0.02% or $0.74. 

Consequently, the EUR to USD exchange rate improved 0.07% to $1.16. 

Furthermore, the GBP to USD exchange rate climbed 0.37% to $1.37.