Forex Marketz Daily Forex News – Fully Markets Update
The dollar was trading higher during the Asian trade session thanks to stronger than expected U.S. retail sales data that was released overnight during the North American session. While the Federal Reserve Board is expected to deliver a rate cut at the end of the month, traders are not expecting a steep cut.
The Asian session also saw the British pound and euro struggling thanks to Brexit concerns and the possibility renewed monetary stimulus from the European Central Bank.
The dollar index, which measures the greenback against a basket of six other Forex majors, was flat during the Asian trade session at 97.363. Overnight the USD gained half a percent.
The GBP/USD exchange rate, overnight, hit a 27 month low at $1.2396 as the two front runners for Tory leadership, Boris Johnson and Jeremy Hunt are committed to exit the European Union at the 31 October deadline with or without a deal in place. During the Asian session the pound was flat at $1.2411.
The euro lost ground against the dollar, on Tuesday, but was steady at 1.1212.
The USD/JPY exchange rate was flat trading at 108.215 yen. Overnight the USD gained 0.3 percent thanks to solid U.S. retail sales data.
Dollar Traders Digest Economic Data out of the U.S. and Europe
Yesterday, the German ZEW indicator showed that investor sentiment worsened sharply in July. Traders are worried about the trade war between China and the United States and mounting political tensions between the U.S. and Iran.
The United States also released key retail sales data, on Tuesday. This number beat expectations and supported trader assumptions that the FOMC will not cut its Fed Fund rate by 50 basis points at the end of July. A 25 basis point cut is still widely expected.
