US Dollar falls sharply in the aftermath of the US Retail Sales report, and it  expected to end the week at a loss.

The US Dollar Index (DXY), which analyzes the performance of the US Dollar (USD) against six major currencies, is down significantly to 106.50 level representing a more than 1.5% loss for the week from Monday.

President Trump faces domestic concerns as headline Retail Sales fall nearly 1% in January.

United States (US) President Donald Trump may be facing his first domestic problem, next to the egg crisis , with even US retail sales beginning to increase significantly. With a huge -0.9% decrease in January headline sales and a surprising -0.4% decline in Sales excluding vehicles and transportation, it’s evident that the US consumer is saving money for a rainy day.

The economic calendar will turn from now to next week, with investors focusing on the preliminary S&P Global Purchase Managers Index (PMI) data for February, which is scheduled on Friday, February 21. Meanwhile, the weekend might be fascinating if President Donald Trump issues additional headlines or actions on tariffs, Ukraine, or other issues.

Daily Market Update: Retail sales appear grim.US Dollar Index (DXY) falls significantly below 107.00 and is on its way to 106.50.

Here are the most noteworthy data releases for Friday:

January Import/Export was out, with the monthly Export Price Index climbing to 1.3%, topping the 0.3% forecast, while the Import Price Index came in at 0.3%, missing the estimate of 0.4% after recovering 0.2% in December.

Retail Sales fell by 0.9% in January, compared to an estimated 0.1% contraction, a significant drop from the revised up 0.7% gain in December. Retail Sales excluding Cars and Transportation fell by 0.4%, a significant drop from the predicted 0.3% gain and revised 0.7% in the previous month.

Equities are taking a turn for the worse, with red numbers across the board, including both European and US indices soon before the US opening bell.

The CME FedWatch program indicates a 57.4% possibility that Interest rates will remain steady at their present levels in June. This means that the Fed will hold interest rates steady for an extended period of time in order to combat persistent inflation.

The US 10-year yield is currently trading at 4.47%, a drop of only two days from this week’s high of 4.657%.