USD Weekly Forecast – More Losses For The Dollar?

Will the Greenback go back to its downtrend this week? Or can the bulls extend their party for a few more days?

Check out the market-moving themes that might affect USD’s intraweek trends!

CPI reports (Jan 13, 1:30 pm GMT)

The consumer price index (CPI) rose more than expected in November, as costs of hotel stays, airfares, and apparel jumped
USD jumped at the news though it also gave up its gains in the next few hours
Analysts see monthly consumer prices rising by another 0.3% in December while core CPI slows down from 0.2% to 0.1% and annual inflation remaining at a 1.2% growth
Take note that Fed member have already hinted that they’re willing to let inflation run hot before stepping in with monetary tightening policies

Retail sales numbers disappointed in November and highlighted the need for fiscal stimulus
USD didn’t have a sustained reaction to the news since the report was printed just hours before the Fed’s last policy decision for 2020
Market players expect retail sales to improve from -1.1% to -0.3% in December, with core retail trading only slipping by 0.1% (from -0.9%) and annual retail sales falling from 4.1% to 3.6%

Focus will turn to the leadership transition in the U.S. and how Trump will handle the economy in the last days of his term
As seen in last week’s price action, stimulus prospects in the U.S. can limit the dollar’s downtrend against its major counterparts

Stochastic is highlighting the dollar’s “oversold” conditions against the Aussie
USD/JPY and USD/CHF are approaching overbought levels on the daily time frame