U.S. Dollar Steadies as Retail Sales Outperform Expectations; Yen Falls By Investing.com


© Reuters.

Investing.com – The U.S. dollar steadied on Friday in Asia, while the Japanese yen fell following the release of better-than-expected U.S. retail sales data.

The U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.1% to 98.062 by 12:50 AM ET (04:50 GMT).

U.S. rose 0.7% in July from a month earlier, data showed. Markets previously expected a rise of 0.3%.

Despite the positive data, analysts warned the fragile calm in markets might not last too long.

An inversion of the U.S. Treasury yield curve sparked concerns of a potential recession, while uncertainties surrounding the Sino-U.S. trade war also weigh as Beijing vowed retaliation against additional U.S. tariffs on Chinese goods.

Ongoing protests in Hong Kong are also expected to further complicate the U.S.-China relationship. On Thursday, U.S. President Donald Trump said he trusts Chinese leader Xi Jinping would want to solve the Hong Kong problem “quickly and humanely.” China responded by saying it does not want outside opinions on internal matters.

The safe-haven yen fell against the dollar as investor sentiment recovered somewhat amid hopes that central banks, particularly the Federal Reserve, would step in to ease monetary policy.

The pair inched up 0.1% to 106.13.

“Hoping for the best on the policy front but positioning for the worst on the economic backdrop seems to be the flavor of the day,” said Stephen Innes, a managing partner at Valour Markets.

“The Fed, now out of necessity alone, will need to adjust policy much more profoundly than they expected.”

Fed Chairman Jerome Powell may give a hint of his thinking when he speaks on Aug. 23 at the annual central bankers retreat in Jackson Hole, Wyoming. The topic of his remarks is Challenges for Monetary Policy, according to the Fed’s public schedule updated on Thursday.

The pair gained 0.2% to 0.6789, while the pair lost 0.1% to 0.6439.

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.

Source link