The US dollar index hit a 16-month high on Monday, driven by global economic growth and inflation concerns and monetary policy expectations, investors await the release of US consumer spending data this week. The dollar index rose 0.42% in late trading to 95.51; the yield on the 10-year US Treasury rose and emerging market currencies weakened. However, the U.S. dollar is lower against risk-sensitive currencies and higher against the euro. After the better-than-expected New York State Manufacturing Index was released, coupled with the active issuance of corporate bonds, U.S. Treasury bond yields rose.

Investors will pay attention to the US retail sales data released on Tuesday to find clues about the next move of the dollar. According to agency surveys, the data is expected to show that retail sales rose 1.1% last month. City Index senior financial market analyst Fiona Cincotta said that after the release of consumer confidence data, the market will pay close attention to US retail sales tomorrow to see if the decline in consumer confidence is reflected in retail sales.

The euro fell 0.77% to 1.1356 against the US dollar, the lowest level since July 2020. It fell 0.67% in late trading to 1.1368; stop-loss and option-related selling pushed the euro against the US dollar below 1.14; spreads and regional virus infections Increased and option activity suppressed the euro. The euro fell 0.1% to 1.05109 against the Swiss franc, the lowest level since May 2020; let's look at the key support at 1.0500.

The pound was basically flat against the U.S. dollar at 1.3416 in late trading; after the Bank of England policy committee's speech, the euro was selling against the pound, and the yield on British government bonds rose. There will be a lot of data coming out in the UK this week, and employment, inflation and retail sales data are expected to provide clues about whether the Bank of England will raise interest rates in December, as the market expects. On Friday, the pound against the dollar hit its lowest level this year.

The U.S. dollar fell 0.37% to 1.2502 against the Canadian dollar; Canadian yields rose, supporting the Canadian dollar exchange rate. Previously, Bank of Canada Governor Tiff Macklem wrote in the Financial Times that Canada is “getting closer” to raising interest rates; The decline in crude oil prices and the technical support of the US dollar against the Canadian dollar limited the Canadian dollar’s gains.

In terms of other currency pairs, the U.S. dollar rose 0.20% to 114.12 against the Japanese yen, the Australian dollar rose 0.20% to 0.7347 against the U.S. dollar, and the New Zealand dollar rose 0.06% to 0.7048 against the U.S. dollar.

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