The U.S. dollar rose against the euro on the concern for the Eurozone economy, then dropped on the unfavorable fundamentals, and yet rebounded after the Federal Reserve officials decreased the forecast for the growth and noted the threat to the economic recovery; the greenback slipped versus the Great Britain pound and the Japanese yen.
The U.S. retail sales declined by 0.5% in June, compared to the forecast 0.2% decrease. The imports prices dropped by 1.3%, mainly because of the lower fuel prices. The imports prices went down by 0.2%, after three months of the increases. The minutes of the Fed meeting in June showed the concern about persisting high unemployment and the worries that the inflation may slow further.
The Fed officials said in the minutes:
The economic outlook had softened somewhat and a number of members saw the risks to the outlook as having shifted to the downside. The changes to the outlook were viewed as relatively modest and as not warranting policy accommodation beyond that already in place.
EUR/USD traded at 1.2733 as of 19:11 GMT today up from its opening price of 1.2722. GBP/USD jumped to 1.5256 after it opened at 1.5157. USD/JPY fell to about 88.17 from the opening rate of 88.72.
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