2024-07-17 01:23:49
The US dollar had mixed results today after a temporary boost from positive US retail sales data. Traders are now mainly focused on the likelihood of interest rate cuts from the Federal Reserve, expected in September. On the other hand, the New Zealand dollar rose, gaining 0.46% to US$0.6078, driven by higher-than-expected unmanageable inflation data for the second quarter.
US retail sales figures released on Tuesday showed no change in June, with a decline in auto dealer revenue offset by overall strength in other areas. These data suggested a resilient consumer environment and indicated potential economic growth for the second quarter. However, the dollar’s initial gains were short-lived as the retail sales report did little to influence market expectations for a September Fed rate cut, an outcome now fully expected by traders.
The euro maintained its strength against the dollar, trading at $1.0897, close to the four-month high reached earlier in the week. Meanwhile, it was near a one-month low at 104.26. There was a slight decrease of 0.05%, to US$0.6730.
Financial market analyst Kyle Rodda of Capital.com commented on the situation, stressing that while retail sales are strong, inflation data is the most telling indicator, suggesting that the Fed may cut rates soon.
In the United Kingdom, it remained stable at US$1.2972, and the next inflation data is expected to influence the Bank of England’s monetary policy decisions. Market strategist Henk Potts of Barclays Private Bank estimated that the UK consumer price index for June could fall to 1.9% year on year, driven by deflationary pressures in key goods and services, which could lead to a rate cut scenario at strengthen the Bank. a meeting.
The Japanese yen was slightly weaker at 158.47, as market participants watched for any signs of currency intervention by the Japanese authorities. After last week’s questionable interventions, data from the Bank of Japan showed that Tokyo may have spent about 2.14 trillion ($13.5 billion) on Friday alone, with total interventions for the week approaching 6 trillion yen.
Reuters contributed to this article.
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