US Treasury data boosts dollar
The two-month dollar slide against the euro abated somewhat yesterday. The release of June’s US Treasury International Capital Data showed that net capital inflow numbers came in at $71.2bln.
The figure, which was well ahead of the consensus expectation of $65bln is seen as adequate to cover June’s trade deficit which had been worst than expected at $58.8bln. The greenback had been sliding from an early July high of $1.1880 against the Euro to $1.2465. It clawed back to $1.2366.
In the UK, the London bombings and attempted bombings in July seem to have taken their toll on retail sales. A report released yesterday by the London Retail Consortium showed that underlying sales dived 8.9% in July year-on-year. The preceding month had seen a 3.6% rise.
The pound managed to rise against the euro however, still buoyed by last week’s quarterly inflation report, which quelled market expectations of medium term interest rate cuts. Attention will focus on tomorrow’s release of the minutes from last weeks MPC meeting. Sterling rose 0.3% against the euro to .6832 but fell off against the dollar to $1.8080.
The markets will be eyeing the release of today’s US inflation figures due out at 1.30pm BST. Headline CPI could rise 0.5%, boosted by higher prices for gasoline and natural gas, pushing year-on-year inflation from 2.5% to 3%. However core inflation is likely to remain benign rising just 0.1%, mainly because of the disinflationary effect of car price discounting by Ford and GM.
Also due out today is the UK CPI figures for July (9.30am BST). The inflation figures are expected to come in at 2.0%. Heavy discounting from retailers on the High street, for household goods and clothing, is likely to be offset by higher petrol and other energy costs.
The figure, which was well ahead of the consensus expectation of $65bln is seen as adequate to cover June’s trade deficit which had been worst than expected at $58.8bln. The greenback had been sliding from an early July high of $1.1880 against the Euro to $1.2465. It clawed back to $1.2366.
In the UK, the London bombings and attempted bombings in July seem to have taken their toll on retail sales. A report released yesterday by the London Retail Consortium showed that underlying sales dived 8.9% in July year-on-year. The preceding month had seen a 3.6% rise.
The pound managed to rise against the euro however, still buoyed by last week’s quarterly inflation report, which quelled market expectations of medium term interest rate cuts. Attention will focus on tomorrow’s release of the minutes from last weeks MPC meeting. Sterling rose 0.3% against the euro to .6832 but fell off against the dollar to $1.8080.
The markets will be eyeing the release of today’s US inflation figures due out at 1.30pm BST. Headline CPI could rise 0.5%, boosted by higher prices for gasoline and natural gas, pushing year-on-year inflation from 2.5% to 3%. However core inflation is likely to remain benign rising just 0.1%, mainly because of the disinflationary effect of car price discounting by Ford and GM.
Also due out today is the UK CPI figures for July (9.30am BST). The inflation figures are expected to come in at 2.0%. Heavy discounting from retailers on the High street, for household goods and clothing, is likely to be offset by higher petrol and other energy costs.
posted by Drs Search @ 11:44 AM
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