Dollar sinks to 10-month low on weak inflation and retail sales data

Dollar sinks to 10-month low on weak inflation and retail sales data

 

The dollar fell to a 10-month low against the basket of world currencies on Friday, after the duo of economic reports showed a slowdown in inflation and retail sales, indicating a weakness in the US economy.
The US dollar index, which measures the strength of the US dollar against a basket of six major currencies, fell 0.54% to 95.04.
Inflation and retail sales data are underestimated, which raises concerns about the strength of the US economy, which narrows the Fed's prospects for raising interest rates.
The inflation rate for the last 12 months slowed to 1.6% in June compared to 1.9% in the previous month, and this compared to a 5-year high of 2.7% in just five months ago.
The economist expected inflation of 1.7%
Adding negative sentiment to the US economy, a report was published on the decrease in retail sales by 0.2 percent.
This was the second month in a row of timid retail sales, and he missed forecasts of growth of economists by 0.2%.
Weaker than expected, the data was weighed in the US by 10-year-olds, suggesting that investors are less optimistic about the pace of future interest rate hikes.
The pound and the euro were the main beneficiaries of the fall of the dollar, reaching session highs and remained on the track to close the positive for a week.
GBP / USD rose to $ 1.3078, and EUR / USD added 0.47% to $ 1.1452.
Elsewhere, Canadian dollar oil should benefit from a spike in oil prices, adding the last position against the dollar amid a decision by Canadian banks to raise rates on Wednesday.
USD / CAD fell by 0.50 percent to $ 1.269, while the pair USD / JPY fell to 1.12.64, or 0.56%.