A busy end to the week could lead to more volatility in markets.

The dollar weakened overnight due to worse-than-expected CPI data from the US. The EUR/USD opened the day at $1.16238 and remained largely flat throughout early and mid-session trading, dipping to a low of $1.16083. The pair took off after the release of the CPI data, rallying to a high of $1.17002 late in the session. It has come off those highs slightly but is threatening to re-enter $1.17 territory, currently trading at $1.16933. The pound followed a similar path to the euro after the GBP/USD opened at $1.30387. The pair traded in a tight range, sliding to lows of $1.30253 mid-session. The pair turned that around, climbing to a high of $1.31235 late in the day. It is not far off those levels, currently trading at $1.31128.

The Dow performed strongly once again after opening at 25,990.32. The index looked set to struggle after declining early, hitting lows of 25,966.60. However, the Dow surged from that point, rallying to a high of 26,190.71 late in the session. It has come off those highs and is currently trading at 26,141.00. The Dax is finally showing some signs of life after opening the session at 12,006.75. After dipping to opening-hour session lows of 12,001.10, the index rallied over the following hours to peak at 12,130.30. It could not hold onto all of those gains, closing at 12,089.80.

The day ahead sees the publication of plenty of data, the most significant being the Retail & Core Retails Sales figures from the US. The expectations for the Retail & Core Retail Sales are for growth of 0.4% & 0.5% respectively, but that is a decline of 0.1% on both figures from the previous month. The release of these figures could cause some volatility for US indices. Other data set for release today includes:

Europe – Trade Balance

UK – BoE Governor Mark Carney speaks

Japan – Revised Industrial Production

China – Industrial Production, Fixed Asset Investment, Retail Sales, Unemployment Rate

US – Import Prices, Capacity Utilisation Rate, Industrial Production, Business Inventories, Prelim UoM Consumer Sentiment & Inflation Expectations

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