Analysts at Brown Brothers Harriman explained that softer than expected April US retail sales and consumer prices saw the dollar pare its gains ahead of the weekend.
“The dollar still finished the week higher against the major currencies, except the Norwegian krone. The krone appeared to benefit from the rally in oil prices and the unwinding of short positions against the euro as the single currency pulled back after the as-expected French election results.
The dollar’s technical tone until data disappointment was improving. The setback clouds the near-term outlook. Recall that the Dollar Index reached a three-week high on May 11, filling the upside gap created by the sharply lower opening in response to the first round of the French election. The sell-off on May 12 retraced 50% of the from the key reversal low set at the start of the week. That was found at 99.20. The 61.8% retracement is near 99.00. A break warns of a retest of the recent low by 98.50.”