USD looks ahead to a busy week of data releases

The US Dollar commenced the week fluctuating against its counterparts due to a lack of domestic data releases, resulting in USD exchange rates struggling to capture investor attention.

However, on Tuesday, the Greenback recorded modest gains following some hawkish remarks from Federal Reserve official Neel Kashkari.

Heading into Thursday, USD exchange rates faced challenges in gaining ground following disappointing domestic jobs data.

The latest initial jobless claims for the week ending May 4 rose more than anticipated, which consequently hampered USD exchange rates.

By the week's end, USD was weakened by the release of the latest Michigan consumer sentiment index, which printed below forecast.

The data came in at 67.4, falling short of the expected reading of 76, causing the Greenback to conclude the week on a weaker note.

The US Dollar is poised for a week filled with significant data releases.

On Tuesday, the US will unveil its latest PPI data for April, which is projected to hold steady at 0.2%. Any deviation from this anticipated figure could potentially lead to USD exchange rates slipping at the beginning of the week.

Entering Wednesday, US headline and core inflation data for April are set for release. As both datasets are expected to moderate closer to the Fed's 2% target, this could weaken USD exchange rates if the data aligns with expectations.

We will also witness the release of the latest US retail sales data on Wednesday, which is predicted to experience a slight decline for this reading.

‍