LONDON (AFX) - The dollar was firmer in early trade as the currency's sentiment defied yesterday's weaker-than-expected Philadelphia Fed business activity index and the initial sell-off in US equities, dealers said. The index fell to 11.4 in March from 16.0 in February, while the consensus forecast of Wall Street analysts had been for a slight fall to 15.2. WestLB's Michael Klawitter said the dollar's failure to weaken on the news "indicates that dollar sentiment has further improved in recent days". He predicted the dollar will push higher next week on the back of several key economic releases from the US, including consumer confidence on Tuesday. Klawitter said the release of US corporate earnings from mid-April "should also give tailwind to the dollar". Barclays Capital currency strategist Jane Foley said yesterday's unexpectedly robust US jobless claims figures for March pointed to "a decent April payrolls number", which could further underpin dollar sentiment. Dealers said little of note is due for release today and predicted currencies will trade within a tight range until next week, when the closely watched German Ifo business climate index and key French indicators will be published. "It's very difficult to imagine the euro breaking higher for the moment because there's no significant euro zone data until next week," Foley said. Klawitter said: "With the upside being capped at around 0.8660 usd, risks are to the downside." In the UK, sterling followed the euro lower against the dollar following yesterday's gains on strong retail dales data.