August 17, 2021

The Market Continues to Grieve! US Retail Sales Are Now The Focus

 Risky sentiment continued to adorn the market during the European session by supporting US dollar trading to rise higher against most major currencies, but declined against other safe-havens.

Coronavirus cases continue to show an increase in the United States and raise market concerns that it will burden recovery. However, the giant currency is still gaining support as a safe-haven.

Against the yen, the greenback continued to trade weaker following a decline in 10-year US bond yields, as well as supported by rising safe-haven demand amid risky sentiment.

Antipodean currencies were among those severely affected by Covid-19. Minutes of the Reserve Bank of Australia (RBA) meeting revealed that they were ready to act in the wake of uncertainty over the economy following the coronavirus closure move.

Moreover, the kiwi dollar plunged more than 1% after a coronavirus case in Auckland prompted the government to implement a three -day shutdown nationwide and seven days in the city.

The news has made investors worried about the outcome of tomorrow’s RBNZ policy meeting, at which it was initially expected to start raising interest rates.

The pound also slipped lower even after being shown by optimistic employment data readings, following strong US dollar trading. The UK unemployment rate fell to 4.7% in June.

The euro, meanwhile, traded steady as the US dollar rose, with market focus now shifting to the release of US retail sales data tonight which is expected to show slower growth than the previous month.