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Dollar index (USDX) still on the back foot as US PPI and Retail Sales data looms

The dollar did make some limited gains earlier this morning, but that was more corrective than it was anything else and perfectly understandable given the losses seen yesterday. So, the USD index (USDX) managed to crawl back to 104.31. However, it has reversed lower again ahead of some relatively important US data, at 12.30pm GMT. That data is the October Producer Price index (PPI). This data is not widely expected to evidence any significant price pressure and perhaps the thing to watch for here, is whether the readings are above consensus. The markets expect annualised core PPI to rise at an unchanged level of 2.7%. Also out at 1.30pm GMT is the latest US retail sales report for October. The forecast is for sales to have fallen by around 0.3%, compared to a 0.7% rise in September. The dollar will not ignore either of these releases. The main question now is whether or not any of this data is good enough to help it recover, or send it lower again. The USD index is now trading at around 104.15

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