US dollarThe U.S. dollar rose on Wednesday on the back of the release of strong retail sales data, while the pound traded near two-years low on Brexit concerns.
The stronger-than-expected retail sales showed the economy was healthy and tempered expectations of aggressive policy easing by the Federal Reserve later this month.
Meanwhile, the pound inched up 0.1% against the U.S. dollar but still traded near its lowest level in two years amid concerns of a no-deal Brexit. Weak economic data and reports the Bank of England could cut interest rates instead of raising them as previously expected were also cited as headwinds for the pound.
EUR/USD challenged multi-day lows in the boundaries of the 1.1200 handle on Tuesday, where it has apparently met some decent contention and dip-buyers.
Reviving safe-haven demand underpins JPY and exerts some pressure, while renewed weakness in the US bond yields further weighed on the US Dollar and as a result USD/JPY failed to capitalize on the previous session’s goodish up-move.
Looking forward, the final CPI figures for the month of June are only due at 09:00 GMT along with a speech by BuBa’s J. Weidmann. From the UK docket, the UK CPI Figures will be also eyed, due at 08:30 GMT. Across the ocean, the US housing sector will be in the limelight while the Fed is expected to release its Beige Book.
Oil prices were near flat on Wednesday after slumping more than 3% overnight following news that U.S. President Donald Trump and his administration were considering talks with Iran.
Gold prices fell to $1,406.75 a troy ounce on Wednesday on hints that the U.S. and Iran may be willing to hold talks. The precious metal had been trading higher ahead of the retail sales data but fell following the retail sales release.