US$ news of President Donald Trump maintained his threat to impose additional tariffs on Chinese imports. The dollar rose against a basket of currencies after strong U.S. retail sales data reinforced market expectations the Federal Reserve will refrain from making a large 50 basis-point rate cut at the end of this month. The focus now shifts towards the US housing data today.
C$ improved overnight with oil prices stabilized giving support to the Loonie. Later on today we have consumer inflation report for June. CPI should decelerate and stay above the 2% target range mid-point.
EUR fell to a one-week low against the dollar on Wednesday and towards the lower end of this year’s trading range, weighed down by expectations of monetary policy easing and investors’ preference for the higher-yielding U.S. currency.
GBP touched a new 27 month low level overnight amid persistent Brexit-related uncertainty. Fears of a no-deal Brexit grew stronger with UK PM candidates Boris Johnson and Jeremy Hunt criticized the Irish backstop and pledged to take it away from future negotiations with the EU.