Dollar on track for weekly gain as investors await Yellen
The dollar rose on Friday, on track for a weekly gain though shy of this week's highs, as investors awaited U.S. retail sales data and remarks from Federal Reserve officials that could cement expectations of a U.S. interest rate hike this year.
The dollar index, which tracks the greenback against a basket of six major rival currencies, added 0.3 percent to 97.812 .DXY.
That was below a seven-month high of 98.129 touched on Thursday, but still up 1 percent for the week, and more than 2 percent for the month so far.
Retail sales data could offer some insight on the strength of consumption. Following the data, Fed Chair Janet Yellen will address a Boston Fed economics conference, at which Boston Fed governor Eric Rosengren will also speak.
Fed's Kashkari: Sluggish growth likely for foreseeable future
Minneapolis Fed President Neel Kashkari said on Thursday that sluggish growth in the U.S. economy will likely remain for the foreseeable future.
"We're not forecasting a recession, but we're also not forecasting a booming economy," Kashkari said at a town hall meeting in Montana streamed live on the bank's website. He said it would likely remain "sluggish."
He has yet to comment on when he would prefer to see a rate increase, but has said he is more worried about raising rates too quickly than too slowly.
China consumer and producer prices rise faster than expected in September
China's inflation stepped up in September, with prices rising more than expected for both consumers and producers in a surprising signal of economic strength.
Consumer prices rose 1.9 percent on-year in September, while producer prices surprised by rising 0.1 percent on-year, the first increase since 2012. The consumer price index (CPI) had been expected to rise 1.6 percent on-year and the producer price index (PPI) was expected to slip 0.3 percent, according to forecasts from a Reuters poll of economists. In August, consumer prices rose by a lower-than-expected 1.3 percent on-year, while producer prices fell 0.8 percent.
The data is watched for cues on the health of the Chinese economy as it transitions from a manufacturing base toward consumption. Producer price deflation had been slowing in recent months as commodity prices have come off their lows and a recovery could signal improved corporate profitability.
Oil prices edged up on Friday
Oil prices edged up on Friday, pushed by a tighter U.S. fuel market and as technical indicators attracted buying from financial players, but doubts over the feasibility of a planned production cut still weighed on markets.
U.S. West Texas Intermediate (WTI) crude CLc1 was trading at $50.78 per barrel, up 34 cents or 0.67 percent from its last close.
Reference: Reuters,CNBC
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