FX Closing Comments

The Dollar had a big day today, making broad gains against the other majors. The September Dollar index was up 44 ticks on the day. The impetus came from the unexpected surge in retail sales, which implied that underlying growth may not be slowing as quickly as previously thought. Looking ahead to next week, the key TIC (capital inflow) data will be released on Tuesday from the Treasury department. It is hoped that the figure will be higher than the corresponding trade deficit of $64.8b. Key inflation is due next week in both the UK and the U.S. Keep in mind that Monday is the Obon bank holiday in Japan.