In general, safer currencies found little demand today as markets were recovering from the shock caused by the Turkish financial crisis. But the US dollar avoided losses for the most part, rising to the highest level in more than a year against the basket of major currencies.
The Dollar Index rallied 0.36% today. Analysts speculated that it was because the Turkish crisis was not resolved, and investors were still buying the greenback as a hedge against associated risks.
The only macroeconomic report released in the United States today was the import and export prices data from the Bureau of Labor Statistics. The report showed that import prices were flat in July, while export prices fell 0.5%. The fall was driven by the drop in agricultural export prices.
The biggest chunk of this week’s economic releases will come out tomorrow. The most important among tomorrow’s reports is considered retail sales data. Analysts predicted that it will show an increase of 0.1% in July following the 0.5% increase in June.
EUR/USD dropped from 1.1498 to 1.1344 as of 19:19 GMT today, trading near the level not seen since July 2017. GBP/USD declined from 1.2756 to 1.12715, retreating from the daily maximum of 1.2827. USD/JPY rallied from 110.64 to 111.21.
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