On Monday, the Greenback declined to a 10-month low vs. its rivals with the U.S. consumer prices (CPI) going against expectations in June, also retail sales declining for the second month in a row. Such data raises doubts about the U.S. economic growth and leaves a question mark whether the Federal Reserve will proceed with an additional rate hike in 2017.
Elsewhere, traders are awaiting the European Central Bank's rate meeting this Thursday; however, no major changes are expected at the meeting.
The Sterling pound rose as much as 1.2% to $1.3093, its highest since September after the release of poor U.S. Inflation and Retail Sales data, while investors are increasingly betting on tighter monetary policy in the United Kingdom. Markets are awaiting June Inflation data, which will be released this Tuesday, traders should watch this closely, because it could affect the decision making of the BOE.
Gold prices edged up this morning after the Greenback declined to multi-months lows following soft economic data that has minimized the outlook for aggressive rate raises from the US Federal Reserve. Spot gold rose 0.19%, to settle at $1,230.91 and US gold futures for August delivery rose 0.24% to settle at $1,230.50. Technically, Spot gold could gain further to $1,239.
Early on Monday, the Greenback rose as much as 1% vs. Japanese Yen to settle above ¥112.61 after closing down 0.6% on Friday.
Meanwhile, Markets are awaiting the upcoming meeting of the Bank of Japan (BOE), as it is expected to hold its monetary policy settings unchanged when it meets on Wednesday and Thursday.
Oil prices rose at the beginning of the week, due to a strong refinery demand from China and due a decline in the growth of rigs in the U.S. Brent crude futures rose by 0.3% or 13 cents to settle at $49.04 by 03:53 GMT. U.S, while West Texas Intermediate crude futures rose to $46.64.
The most important economic events:
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