Forex▼ Bearish
Dollar heads for weekly fall as rate-hike bets unwind
Traders unwound rate-hike bets after soft U.S. retail sales and PPI data. The dollar index fell 1% on the week as the yen, euro, and sterling rallied.
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The dollar is on track for a weekly decline as traders pulled back wagers on further Federal Reserve rate increases, a shift that rippled through currency markets from Tokyo to London.
The dollar index slipped 0.3% Friday, bringing its weekly loss to roughly 1%. The move followed a string of softer U.S. data, including a weaker-than-expected retail sales print and a downshift in producer prices. Those prints undercut the narrative that the Fed would need to resume tightening after the July hold.
The reversal hit hardest against the yen, where the dollar fell below 157 after touching 161.80 three weeks ago. The euro climbed through 1.0950 for the first time since March. Sterling pushed above 1.3050.