Soft US Data Sends Greenback Lower

The latest retail sales data out of the United States is softer than expected, a reality that is sending the greenback lower against its major counterparts today. Expectations for a September interest rate hike are fading a bit, although many are still holding out for the release of the Fed’s Beige Book tomorrow.

Retail sales fell 0.3 per cent in June, according to the latest information released by the Commerce Department. Analysts had expected to see an increase of 0.2 per cent. On top of that, May retail sales figures were revised downward to a 1.0 per cent increase from an increase of 1.2 per cent.
With this evidence that maybe the economy isn’t quite ready for an interest rate hike in September, the US dollar is heading a little lower today against its major counterparts. Federal Reserve Chair Janet Yellen will appear before Congress on Wednesday to talk about the economy as the Fed releases its Beige Book.
At 14:28 GMT the US dollar index is down to 96.95 from the open at 96.88. Greenback is lower against its major counterparts as well. EUR/USD is higher, moving up to 1.1009 from the open at 1.1006. GBP/USD is also higher, gaining to 1.5566 from the open at 1.5489. USD/JPY is down to 123.3520 from the open at 123.4260.

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