Dollar drifts upward in a quiet day of summer trading
21/Jul/2015 • Currency Updates•
The absence of notable macroeconomic news or policy announcements yesterday had Sterling retracing some of its gains from the previous week.
It ended the day with marginal losses of less than 0.5% against both the Euro and the US Dollar. However, the movement seem to lack conviction as traders focus on Wednesday’s release of the Bank of England minutes from the July monetary policy meeting, including the vote on interest rates, where we look for confirmation of the hawkish turn suggested last week by Governor Carney and MPC member Miles
It was a similarly quiet story for the Euro.
The only macroeconomic release was the trade balance for the Eurozone as a whole, which came in at a positive 18 billion Euros, but did not seem to move markets. Creditors, the European Central Bank and the Greek Government all seem to be making a concerted effort to stay out of the headlines, hence the lacklustre trading we saw yesterday. The Euro traded in a very tight range against most other G10 currencies.
A lack of significant economic releases today means Euro volatility will likely be dependent on events elsewhere or announcements regarding the Greece situation.
Again, no data releases of note in the US, as the Dollar drifted marginally higher against most other G10 currencies, in the absence of Greece headlines or important macroeconomic news anywhere.
Today looks set to be a relatively muted day as far as economic data is concerned. The announcement of the weekly Redbook index, a measure of growth in US retail sales, could cause moderate movement in the Dollar, when released this afternoon.
Rest of the world
There was a modest recovery in the New Zealand Dollar, after its previous dismal week, ending 0.5% – 1% higher against other G10 currencies, although still down very sharply so far in July.