The US dollar remained stable as the market entered the European session, showing the king of the currency continued to maintain its strengthening momentum at its highest level this year.
However, the decline in 10 -year US bond yields prevented the giant currency from rising higher causing the performance displayed in today's trading session to be a bit gloomy.
Positive Chinese retail sales data to some extent helped support market sentiment in two sessions today, providing support for risk -sensitive currencies to post gains.
The Aussie dollar and kiwi traded slightly higher, trying to bounce back from record lows following the strengthening of the US dollar last week with each trading at around 0.73550 and 0.70600 against the USD, respectively.
While the European currency, the euro remained weak weighed down by a strong greenback dollar keeping it at a 16 -month low in the European session.
The pound, meanwhile, continued to trade under pressure, failing to capitalize on the depreciation of the US dollar at the beginning of the previous session. News of Brexit provided minimal support for currency trading as it was still impressed by the dovish move by the Bank of England (BOE).
The focus of pound investors this week is inflation data and UK retail sales which will be the next determinant of the movement of the ‘cable’ currency.
