RTTN: Dollar Stuck At Yearly Lows Ahead Of Data Deluge
(RTTNews) - The dollar remained on the ropes Friday morning in New York, ahead of the latest reading on US inflation and a pair of speeches from key Federal Reserve officials.
The dollar has dropped to its lowest in 2010 versus a basket of six major currencies, stung by speculation that the Fed is preparing a second wave of asset purchases in an effort to boost inflation and stimulate the sluggish economy.
While most FOMC members appear to be on board with the move, dissension has emerged. Earlier this week, Richmond Fed President Jeffrey Lacker warned that too much focus on improving the employment situation risks the bank's ability to control inflation in the longer term.
And Kansas City President Thomas Hoenig has repeatedly said that Fed should not be thinking about further accommodation, but should begin to consider tightening.
Atlanta Federal Reserve Bank President Dennis Lockhart is due to participate in a Q&A session with the Executive Women of Goizueta in Atlanta at 8 AM ET.
Shortly later, Federal Reserve Chairman Ben Bernanke is scheduled to speak to the Boston Fed's conference on Revisiting Monetary Policy in a Low Inflation Environment.
At 8:30 am ET, the Labor Department will release its consumer price inflation report for September. Economists expect a 0.2% increase in the headline inflation rate and a 0.1% increase in core consumer price inflation.
Simultaneously, the Commerce Department is set to release its retail sales report for September. The consensus estimates call for a 0.4% rise in both retail sales and sales, excluding autos.
Around the same time, the New York Federal Reserve will release the results of its manufacturing survey for October. The general business conditions index is expected to show a small increase to 5.75 from the previous month's 4.1.
The dollar remained near yesterday's 8-month low of $1.4121 versus the euro, and touched $1.6067 against the sterling -- its lowest since January.
With no intervention by Japanese officials detected, the dollar stayed near this week's 15-year low of Y80.88. A move below Y79.80 would take the buck to its lowest ever versus the yen.
The dollar managed to claw back some recent losses versus the loonie, bouncing back above parity after slipping below the Canadian dollar on Thursday.
