The dollar erased its weekly gains and after reaching highest level in the week at 92.64, driven by positive inflation data, which pushed expectations for a rate hike to 50% in December for the first time since July, as well as reports that the details of the tax reform plan will be announce soon, but in the last two days of the week fell strongly to its weekly low of 91.34.
US retail sales unexpectedly fell in August, and industrial production printed the biggest drop since 2009 as Hurricane Harvey hit the US coasts, signaling the hurricane could play a role in slowing economic growth in the third quarter of 2017.
In the UK, the Bank of England kept interest rates unchanged at 0.25%, but warned that it could raise them at any time in the coming months, especially as inflationary pressures continue as the consumer price index hits its highest level since mid-2013 at 2.9%.
On the other hand, the labor market data was very good as unemployment rates continued to decline to a 42-year low of 4.3%, but concerns about wage growth are the hurdle in UK employment data as inflation figures continue to rise.
Also, British MPs voted in favor of the EU withdrawal law amid strong opposition that the law represents a power grab from ministers. Sterling hit its highest level since voting in the EU membership referendum last year, reaching 1.3615 against the US dollar in Friday's trading sessions after a BOE member Vlieghe turned to support rising interest rates soon.
Crude oil performance this week is the best since late July, as prices continued to rise for a fifth consecutive day and are on the verge of exceeding 50$, following positive reports from OPEC and the International Energy Agency (IEA) on the oil market. In addition to the statements that the market on its way to regain lost balance.
