The US Dollar remained close to a 3-week peak in European trading after yesterday’s release of unexpectedly upbeat retail sales data helped to lift risk appetite. Retail sales jumped to 0.6% in July (month-over-month), well above analysts’ forecast of 0.4% and the largest rise in the past seven months. Moreover, June’s figures were revised upward to 0.3% from -0.2%. Analysts say that this, along with the latest data, could translate into increased inflation which could result in the Federal Reserve accelerating a hike in lending rates before the year’s end.
As reported at 11:20 am (BST) in London, the USD/JPY was trading at 110.823 Yen, a gain of 0.22%; the pair is moving off the session peak of 110.952 Yen while the low stands at 110.538 Yen. The USD/CHF was up 0.04% to trade at 0.9725 Swiss Francs; in today’s trading, the pair has ranged from a session low of 0.97190 Swiss Francs to a peak of 0.97563 Swiss Francs.
Trump Concerns Limit Dollar Gains
Analysts do point out that geopolitics will continue to limit on the Dollar’s gains, though the concerns over a possible missile strike in Guam by North Korea seems to now be diminished. The greater problem, currently, is President Trump’s inability to push through promised spending plans and tax reforms. He is presently embroiled in another controversy after appearing to take the side of neo-Nazi extremists and white supremacists who clashed with protestors over the weekend in the college town of Charlottesville, Virginia.