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Forex - Dollar comes off lows hits after retail sales report

Published 07/14/2015, 10:51 AM
© Reuters.  Dollar recovers from lows hit after fall in U.S. retail sales
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Investing.com - The dollar regained ground against the other major currencies on Tuesday after initially falling to session lows when data showed that U.S. retail sales unexpectedly fell last month.

The dollar turned lower after the Commerce Department said retail sales fell 0.3% in June, compared to expectations for a 0.2% increase.

May’s retail sales were revised down to 1.0% from 1.2% previously.

The data added to concerns over the outlook for second quarter growth.

The dollar had weakened slightly earlier in the session amid concerns that testimony by Federal Reserve Chair Janet Yellen to Congress on Wednesday could push back expectations on the timing of an initial rate hike.

EUR/USD was last at 1.1003 after rising to highs of 1.1082 earlier, while USD/JPY was at 123.38, up from lows of 122.92.

The euro remained under pressure as investors waited to see if the Greek parliament would support harsh austerity measures demanded by the country’s creditors in exchange for a deal to avoid financial collapse.

Greek Prime Minister Alexis Tsipras was meeting with MP's on Tuesday, but faced an uphill battle to win support for a third bailout deal offered by the country’s creditors.

Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.

Meanwhile, talks on a bridging loan for Athens, to cover repayments to the European Central Bank in July and August, were continuing in Brussels.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed for the day at 96.89, off lows of 96.36.

The greenback also pared losses against the pound, with GBP/USD at 1.5569.

Sterling was boosted earlier Tuesday after Bank of England Governor Mark Carney said the time for rate increases is moving closer, in testimony to the Treasury Committee in Westminster.

The Swiss franc retreated from session highs, with USD/CHF last at 0.9463.

The commodity linked currencies also cut gains. AUD/USD was last up 0.51% to 0.7445; NZD/USD was steady at 0.6696 and USD/CAD was little changed at 1.2736.

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