U.S. Dollar Heading for Poor Week

The dollar headed for a weekly slide versus most of its 16 major counterparts before reports today that may show industrial production gains moderated, while consumer sentiment declined.

The Bloomberg Dollar Spot Index closed yesterday at a one-month low amid signs of weakness in economic data released this month on retail sales, manufacturing and employment. The euro traded near the highest in more than two weeks before figures today that may show the 18-nation region’s economy grew during the last quarter of 2013 for a third-straight period.

“We’re not too shocked by the disappointing U.S. data,” said Sean Callow, a Sydney-based currency strategist at Westpac wrote in a note to clients today. “It does cause the U.S. dollar some damage” against higher-yielding assets such as the Australian and New Zealand currencies, Callow said.

Bloomberg

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