USD weekly forecast

The US Dollar began the week trading within a narrow range, lacking significant data to guide its direction.

Wednesday saw the US Dollar plummet against most of its counterparts following the release of the latest US consumer price index. The data came in weaker than anticipated, with headline inflation unexpectedly easing from 3.4% to 3.3% in May, resulting in a depreciation of the USD following the release.

On Thursday, the Dollar attempted to recover some of its losses following the Federal Reserve's latest interest rate decision later that evening.

Despite the Fed implying that it will only implement one interest rate cut this year, the US Dollar continued to struggle to attract buyers.

As Thursday progressed, an unexpected drop in US producer price inflation and a surprise increase in jobless claims appeared to have minimal impact on USD investors, with the American currency trading sideways for the rest of the week.

Looking ahead for the US, significant market-moving data will be scarce next week. However, on Tuesday, the US will release its latest retail sales data.

The data is expected to show a slight increase in May's reading, forecasted to rise from 0% to 0.3%. If the data meets expectations, this could provide modest support for the USD as the week progresses.

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