Weekly Roundup: US dollar fluctuates amid recession fears
Amy Richards January 23rd 2023 - < 1 minute read
The US dollar got off to a slow start last week. The closure of US markets for Martin Luther King Day lead to thin trading conditions in the ‘greenback’ on Monday.
A risk-on impulse also weakened USD demand through the first half of the week.
Wednesday then saw the publication of some much weaker-than-expected US data, with both PPI and retail sales printing below forecast.
The data propelled the US dollar sharply higher as skittish investors flocked to the safe-haven currency amid US recession fears.
However the US dollar almost immediately trimmed these gains after upbeat US economic data on Thursday calmed markets and revived risk appetite.
This downtrend continued to persist though the end of the week as an improving market mood offset a rise in US Treasury yields.
The latest US GDP figures will likely act as the main catalyst of movement for the US dollar this week. Will an upbeat fourth quarter US growth reading bolster USD exchange rates?