Real economic and sentiment indicators likely to set the pace for USD

U.S economy remains wary of low inflation expectations associated with the renewed declines in crude oil prices. President of the St. Louis Fed James Bullard stated that as inflation expectations react to the oil price movements, concerns to see through the changes in oil price rises. As the inflation rate is under pressure mainly as a result of declining the oil prices, the Fed will be determined to take necessary measures.

The dollar index is currently at 98.94 and real economic indicators that include retail sales and industrial production along with sentiment indicators (University of Michigan) will provide further direction to the US dollar.