EUR/USD Remains Under Strain.
The primary currency pair is demonstrating a degree of stability on Wednesday. The present EUR/USD exchange rate holds at 1.0910.
Retail sales volume in the United States witnessed a 0.7% month-on-month surge in July. This data outperformed projections, which had anticipated a 0.4% rise, in contrast to the 0.2% increase recorded the preceding month. On an annual basis, the index experienced a 3.2% ascent. Excluding the automotive and spare parts sector, the metric climbed by 1% m/m.
US import prices rebounded with a 0.4% month-on-month escalation in July, recovering from the 0.1% downturn in June. Concurrently, export prices marked a 0.7% m/m advancement.
Collectively, these figures underscore robust pro-inflationary patterns. However, in the forthcoming release of the minutes from its most recent meeting, the US Federal Reserve System is unlikely to explicitly address this situation. Nonetheless, these indicators should be factored into the equation when assessing the Fed’s future strategies.
The current anticipation in the market is that the Federal Reserve will halt its series of monetary policy tightening in September. Yet, apprehensions about the overall outlook are on the rise – a cursory glance at the USD’s trajectory is sufficient to substantiate this sentiment.
The USD continues to enjoy advantages stemming from global risk aversion, which has been fueled by developments in China and beyond.
The post The Resilient US Dollar – Summary for August 16, 2023 appeared first at R Blog – RoboForex.
