Weekly Roundup: US dollar crumbles amid cooling US inflation 

The safe-haven US dollar wavered early last week as a mixed market mood and shifting US Treasury yields saw USD struggle to find a clear direction. 

The ‘greenback’ then collapsed on Wednesday after the latest US CPI. Both headline and core inflation cooled more than forecast, with the headline rate hitting its lowest level in over two years. A sharp pullback in Federal Reserve rate hike bets saw USD plunge. 

Thursday saw the selloff continue, with a weaker PPI reading sending the US dollar spiralling to 15-month lows. 

A slight souring of the market mood on Friday saw the US dollar attempt to edge higher. However, the American currency remained sharply lower on the week. 

USD remains muted this week, despite a bearish tone among investors. 

Looking forward, an expected acceleration in US retail sales growth could lend the US dollar some much-needed support on Tuesday. 

Market-moving data starts thinning out as the week goes on, although the latest initial jobless claims could influence USD on Thursday. Could an uptick in claims dent the US dollar?