Forexpros – The U.S. dollar turned higher against all of the other major currencies on Tuesday, after official data showed that U.S. retail sales rose in July, snapping four successive months of declines.
During U.S. morning trade, the dollar pushed higher against the euro, with EUR/USD slipping 0.10% to 1.2319.
The U.S. Commerce Department said retail sales jumped 0.8% last month, after a 0.7% drop in June, surpassing expectations for a 0.3% increase.
The euro rose to a session high against the greenback earlier, after data showed that Germany’s economy expanded by 0.3% in the second quarter, slightly better than expectations for 0.2% growth, while France’s economy stagnated, beating expectations for a 0.1% contraction.
But the single currency drifted lower after official data showed that the euro zone economy contracted by 0.2% in the three months to June, in line with expectations, bringing the annualized rate of contraction to 0.4%.
Overall market sentiment continued to be underpinned by expectations that recent indications of a slowdown in global growth would prompt world central banks to implement more easing measures to spur the economic recovery.
The greenback was also higher against the pound, with GBP/USD dipping 0.04% to 1.5677.
The pound pushed higher against the greenback earlier, after official data showing that consumer inflation in the U.K. rose unexpectedly in July dampened expectations for near-term quantitative easing by the Bank of England.
The Office for National Statistics said the rate of consumer price inflation accelerated to a seasonally adjusted 2.6% in July from 2.4% the previous month. Analysts had expected CPI to ease slightly to 2.3%.
Elsewhere, the greenback climbed to a one-month high against the yen and gained ground against the Swiss franc, with USD/JPY advancing 0.55% to 78.44 and USD/CHF easing up 0.10% to 0.9749.
The yen came under pressure after the minutes of the Bank of Japan’s August meeting indicated that policymakers have not ruled out further stimulus measures to bolster growth.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD inching up 0.03% to 0.9927, AUD/USD down 0.30% to 1.0485 and NZD/USD losing 0.41% to hit 0.8056.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.16% to 82.60.
Also Tuesday, official data showed that U.S. producer prices rose more-than-expected in July, adding 0.3%, against expectations for a 0.2% rise.
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