It was a mostly quiet / low volatility week for the Greenback, finishing mixed and arguable net lower despite higher inflation data from the U.S.
United States Headlines and Economic data
Broad global risk sentiment was mostly negative on the session, likely contributing to the Dollar’s move higher during the morning London session. The negative vibes was likely a mixed of rising no-deal Brexit fears, weakness in the U.S. equity markets, and disappointing economic updates from Japan and Australia.
The Greenback pullback from Tuesday’s gains as the rebound in the U.S. equity markets likely reduced the demand for Dollars as a safe haven play.
The dip lower in USD at the early start of the U.S. session was likely a reaction to the euro bounce higher, rallying after the ECB refrained from commenting on recent euro strength. But USD bulls were able to recover, likely with the help of better-than-expected PPI data (U.S. producer prices beat expectations in August)
U.S. consumer prices increased solidly in August, up 0.4%, to likely support the Greenback higher on the session, but it was likely the weakness in the U.S. equity markets that were the main driver for the small bounce in USD during the U.S. session.