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Forex - U.S. Dollar Rises on Strong Retail Sales 

Published 07/16/2019, 10:54 AM
Updated 07/16/2019, 11:16 AM
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Investing.com - The U.S. dollar was higher on Tuesday after stronger-than-expected retail sales showed the economy was healthy, even as the Federal Reserve is expected to cut interest rates.

Investing.com - The U.S. dollar was higher on Tuesday after stronger-than-expected retail sales showed the economy was healthy, even as the Federal Reserve is expected to cut interest rates.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, gained 0.4% to 96.922 by 10:54 AM ET (14:54 GMT).

Retail sales rose 0.4% in June, the Commerce Department reported on Tuesday, compared to expectations for a slight gain of 0.1%.

The sales data underscores the health of consumer spending amid a tight labor market. The strong numbers are likely to be taken into account at the Fed’s next meeting, where the central bank is expected to cut rates by 25 basis points.

The dollar was higher against the Japanese yen, with USD/JPY rising 0.3% to 108.22.

Meanwhile, the pound fell to its lowest level in two years after concerns of a no-deal Brexit intensified.Both Prime Minister candidates Jeremy Hunt and Boris Johnson have voiced their opposition to an Irish backstop agreement, making it even more likely that the U.K. will leave the European Union on Oct. 31 without a deal.

The new U.K. prime minister will be announced on July 22.

GBP/USD fell 0.9% to 1.2408, its lowest level since January 2017.

Elsewhere, EUR/USD was down 0.3% to 1.1218, AUD/USD slipped 0.1% to 0.7032, while USD/CAD declined 0.2% to 1.3025.

Investing.com - The U.S. dollar was higher on Tuesday after stronger-than-expected retail sales showed the economy was healthy, even as the Federal Reserve is expected to cut interest rates.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, gained 0.4% to 96.922 by 10:54 AM ET (14:54 GMT).

Retail sales rose 0.4% in June, the Commerce Department reported on Tuesday, compared to expectations for a slight gain of 0.1%.

The sales data underscores the health of consumer spending amid a tight labor market. The strong numbers are likely to be taken into account at the Fed’s next meeting, where the central bank is expected to cut rates by 25 basis points.

The dollar was higher against the Japanese yen, with USD/JPY rising 0.3% to 108.22.

Meanwhile, the pound fell to its lowest level in two years after concerns of a no-deal Brexit intensified.Both Prime Minister candidates Jeremy Hunt and Boris Johnson have voiced their opposition to an Irish backstop agreement, making it even more likely that the U.K. will leave the European Union on Oct. 31 without a deal.

The new U.K. prime minister will be announced on July 22.

GBP/USD fell 0.9% to 1.2408, its lowest level since January 2017.

Elsewhere, EUR/USD was down 0.3% to 1.1218, AUD/USD slipped 0.1% to 0.7032, while USD/CAD declined 0.2% to 1.3025.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, gained 0.4% to 96.922 by 10:54 AM ET (14:54 GMT).

Retail sales rose 0.4% in June, the Commerce Department reported on Tuesday, compared to expectations for a slight gain of 0.1%.

The sales data underscores the health of consumer spending amid a tight labor market. The strong numbers are likely to be taken into account at the Fed’s next meeting, where the central bank is expected to cut rates by 25 basis points.

The dollar was higher against the Japanese yen, with USD/JPY rising 0.3% to 108.22.

Meanwhile, the pound fell to its lowest level in two years after concerns of a no-deal Brexit intensified.Both Prime Minister candidates Jeremy Hunt and Boris Johnson have voiced their opposition to an Irish backstop agreement, making it even more likely that the U.K. will leave the European Union on Oct. 31 without a deal.

The new U.K. prime minister will be announced on July 22.

GBP/USD fell 0.9% to 1.2408, its lowest level since January 2017.

Elsewhere, EUR/USD was down 0.3% to 1.1218, AUD/USD slipped 0.1% to 0.7032, while USD/CAD declined 0.2% to 1.3025.

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