Kantox currency report: U.S. Dollar, retreating from one-month highs
The dollar lost ground for the second consecutive day on Thursday despite the release of a string of upbeat macroeconomic indicators in the U.S, which proves that the market is still wary about president Trump’s trade policies and their potential consequences on the economy.
EUR/USD near 1.0700; on track for weekly gains. The euro advanced on Thursday for the second consecutive day to extend its recovery from week lows at 1.0520 to levels near 1.0700. At London market opening times, the EUR/USD is trading at 1.0655.
GBP/USD: returns to 1.2500 area. Sterling’s downside attempt seen on Wednesday was supported at 1.2380 low and the pair has returned to the trading range of the last two weeks, around 1.2500. At London market opening times, the GBP/USD is trading at 1.2485.
USD/JPY pullback extends to 113.00 area. Dollar rally from last week lows at 111.65 was capped at 115.00, and the pair extended its reversal on Thursday, hitting one-week lows at 113.05. At London market opening times, the USD/JPY is trading at 113.35.
In the Calendar Today
At 09:30 GMT National Statistics will release the UK retail sales. Consumption is seen increasing in January although the rising inflation is expected to squeeze consumption in the coming months. A weaker than expected reading in retail sales might have a near –term negative impact on the pound.
09:30 GMT UK: Retail sales (MoM) (Jan)
Prev: -1.9% Cons: 1.0%