Forex – GBP/USD Rises to Nearly Three Month High as Dollar Edges Lower



Investing.com – The dollar fell against a basket of major currencies despite a rise in retail sales for the first time in four months as a strong rally in sterling added to downside momentum.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.39% to 89.16.

The Commerce Department said on Monday that retail sales fell , topping economists’ forecast for a 0.4% increase.. The retail sales control group – which has a larger impact on U.S. GDP – in-line with expectations.

The Federal Reserve Bank of New York, meanwhile, revealed lower-than-expected Empire State Manufacturing Index .

The upbeat retail sales print did little to help the dollar recover as market participants said the data is not likely to significantly boost first-quarter U.S. GDP growth, but remained confident that consumer spending will “accelerate” given the strong labor market and recent tax cuts.

“Tax cuts and a tighter labor market should support household spending going forward and we expect consumption to accelerate over the remainder of the year as a result,” CIBC said.

A sharp rise in to $1.4329, up 0.63%, to a nearly three-month high, weighed on the greenback as sterling continued to benefit from the European Union and UK’s agreement on both divorcing terms and a 21-month post-Brexit transitory period.

fell 0.13% to Y107.27 as traders focused on developments in Japan, where approval ratings for Japan prime Minister Shinzo Abe continued to drop.

Support for Abe fell to 26.7%, Reuters reported, citing a survey by private broadcaster Nippon TV released on Sunday. Standard Chartered warned that historically a drop in the approval rating to 30% “has been a pivotal level for regime changes.”

fell 0.22% to C$1.2579, while rose 0.37% to $1.2376.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments

comments