Investing.com - The dollar held gains against the other major currencies on Tuesday after data showed that U.S. retail sales fell unexpectedly in September, cementing expectations that the Federal Reserve will keep its stimulus program unchanged at Wednesday’s meeting.
During European afternoon trade, the euro remained lower against the dollar, holding off last Friday’s 23-month highs, with EUR/USD down 0.13% to 1.3769.
Data on Tuesday showed that U.S. retail sales fell 0.1% last month, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4%, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%, in line with expectations.
The data underlined expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the economic recovery following the recent 16-day government shutdown.
The U.S. was to release a report on consumer confidence later in the trading day.
Demand for the dollar was underpinned by the view that markets have already priced in expectations that the Fed will make no changes to its USD85 billion-a-month asset purchase program on Wednesday.
The dollar was trading close to session highs against the yen, with USD/JPY up 0.27% to 97.94.
The dollar was also higher against the pound, with GBP/USD down 0.38% to 1.6080.
In the U.K., data on Tuesday showed that mortgage approvals rose to the highest level since February 2008 in September, adding to signs of a recovery in the housing market.
The dollar was holding above last week’s 20-month lows against the traditional safe haven Swiss franc, with USD/CHF up 0.16% to 0.8971.
The greenback was broadly higher against its Australian and New Zealand counterparts, with AUD/USD dropping 0.84% to 0.9492 and NZD/USD down 0.47% to 0.8262.
Australia’s dollar weakened after Reserve Bank of Australia Governor Glenn Stevens said Tuesday it was likely the Australian dollar would fall materially in the future as exchange rate levels are not supported by Australia’s relative levels of costs and productivity.
The greenback was almost unchanged against the Canadian dollar, with USD/CAD dipping 0.02% to 1.0442.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 79.56.
During European afternoon trade, the euro remained lower against the dollar, holding off last Friday’s 23-month highs, with EUR/USD down 0.13% to 1.3769.
Data on Tuesday showed that U.S. retail sales fell 0.1% last month, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4%, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%, in line with expectations.
The data underlined expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the economic recovery following the recent 16-day government shutdown.
The U.S. was to release a report on consumer confidence later in the trading day.
Demand for the dollar was underpinned by the view that markets have already priced in expectations that the Fed will make no changes to its USD85 billion-a-month asset purchase program on Wednesday.
The dollar was trading close to session highs against the yen, with USD/JPY up 0.27% to 97.94.
The dollar was also higher against the pound, with GBP/USD down 0.38% to 1.6080.
In the U.K., data on Tuesday showed that mortgage approvals rose to the highest level since February 2008 in September, adding to signs of a recovery in the housing market.
The dollar was holding above last week’s 20-month lows against the traditional safe haven Swiss franc, with USD/CHF up 0.16% to 0.8971.
The greenback was broadly higher against its Australian and New Zealand counterparts, with AUD/USD dropping 0.84% to 0.9492 and NZD/USD down 0.47% to 0.8262.
Australia’s dollar weakened after Reserve Bank of Australia Governor Glenn Stevens said Tuesday it was likely the Australian dollar would fall materially in the future as exchange rate levels are not supported by Australia’s relative levels of costs and productivity.
The greenback was almost unchanged against the Canadian dollar, with USD/CAD dipping 0.02% to 1.0442.
The U.S. dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.20% to 79.56.