The US dollar index is weakening slightly this morning after FED Chair Jerome Powell signaled that there is no definite time limit to the current pause on interest-rates hikes in a wide-ranging interview on CBS News’ “60 minutes” yesterday. However, Powell said the outlook for the US economy is favorable, and he highlighted risks to global growth from China, Europe, and Brexit. Powell also commented last week about the need to set a “high bar” for any fundamental change to its inflation targeting strategy, as a debate heats up within the US central bank over ways to boost its capacity to fight downturns.
Regarding economic data, the retail sales month to month came in at 0.2 percent when the expected number was 0 percent. Additionally, the retail sales excluding autos and gas for January came in at 1.20 percent versus the 0.60 expected. However, Powell’s latest comments are weighing more on the US dollar this morning. The US dollar has fallen 0.1 percent at the time of this writing.