On Friday, the dollar strengthened against most major currencies except the yen. Changes in alignment of forces in the foreign exchange market made the data from the USA and news about the military coup attempt in Turkey. Strong retail sales figures, which in June surged by 0.6% m/m from +0.2 percent against the forecast of +0.1 percent. Inflation was slightly worse than the index remained unchanged at +0.2% vs. expected +0.3 percent. However, “American” considered the General economic picture as favorable and strengthened their positions, and at the close of trading for the dollar and yen as safe assets accelerated as the message about the rebellion in Turkey. The same factor has pushed to increase oil prices, which traditionally are not indifferent to unstable times in the middle East.
In the first half of the day EURUSD remained in the green zone, defending the position of the mark 1.11. Data on the trade balance of the Eurozone have left quotes indifferent – may figure is already essentially lost its relevance. The surplus narrowed from 28.0 billion euros to 24.5 billion Attempts to strengthen the pair ran into resistance around 1.1150, then the price changed the direction of movement. Dollar buying intensified after the release of statistics from the United States, which was mixed, but generally favourable. The pair has dropped under the mark of 1.11, and the last hour of trading have suffered another great loss in the flight from risk amid news from Turkey. He felt the minimum at 1.1024, EURUSD closed near this area and lost points in the previous two days.
The GBPUSD attempted to continue growth in Asia, reaching up to the 1.3480 zone, which limited the rally the day before. Here, the pair has lost its bullish momentum and started correction. In the absence of dayverov further growth of the players decided to take profits on more attractive levels. Also the limiting factor was the reminder about the prospects of easing in August, have hinted that the Bank of England on Thursday. Before the beginning of the American session, the quotes were maintained above the level of 1.33, but was accelerated by a bearish move after the publication of the retail sales in the United States. Widespread buying of the dollar, which intensified after the Turkish event, sent the pound to lows around 1.3130. To the closing price corrected closer to 1.32.
In Asia, USDJPY has met buyers in the area of 105.00 and went to around 106.30. After failing to break this resistance with a few attempts, the couple moved to consolidate under the 106.00 mark. Moreover, us economic data helped the dollar resume the upward movement. Sentiment on the yen has improved, sending prices under 105.00, to lows in the area of 104.60.
At the start of a new week is traditionally not stated important releases. The German Bundesbank will publish its monthly report in Britain by the Bank of England will, and in the United States claimed the index market value of NAHB housing.