Speculations that the Feds will lower rates any time next month is keeping the dollar steady against its major counterparts dragging the pairs to trade within narrow ranges. At the same time the currency markets are trading in a calmly manner so far through the day as it lacks incentives. However, investors are waiting for news on US retail sales in which it is expected to give a briefing of the conditions of the economy. If the retail sales data comes in weaker than expected then it will flash concerns about the US economy and thus spark dollar selling.
Meanwhile, the ZEW Survey released yesterday from the euro zone showed a surprising pick up in German investors confidence, as a result pressures on the ECB to cut interest rates was eased. As for today, the dollar traded lower against the euro on speculation the US retail sales report will record a drop hence reinforcing the Feds' cuts in rates. At this hour, the pair recorded a low of 1.4542 after recording a high of 1.4586.
Although the market's focus is on the US retail sales in which case the dollar lowered against the pound, taking the position of an expected drop in the reading. However we must not disregard the importance of the UK data on employment and the Quarterly Inflation Report due for release in which it is likely that the Royal pound will be in play. As for now, the pair is fluctuating within narrow ranges to record at this hour a high 1.9598 of low of 1.9561
Elsewhere, the dollar edged down against the yen as a sell off in shares shook risk appetite, encouraging investors to unwind hence buying the low- yielding yen pushing the pair to the downside to fetch a low of 106.99 after recording a high of 107.41.
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