- Strong retail sales data could send USD even higher
- GBP remains in downtrend
- EUR could weaken further against JPY
On Tuesday, the US dollar once again took center stage as it continued its bull run and kept increasing the pressure on other global currencies.
Yesterday it seemed to be more about people simply buying dollars than about them looking for a safe haven currency. It is important to keep in mind that the Fed is still on track to increase rates twice before the end of the year, which is something no other major central bank plans to do.
Add to that the technical resistance levels that kept being broken and this bull run is indeed a strong one.
The most important piece of economic data expected today is retail sales. Traders should remember that just a couple of months ago, the USD spiked sharply after the release of strong retail sales data and this could easily happen again.
As the CPI data is released, the GBP/USD will also receive a lot of attention, but it seems that a lot will have to happen to break the GBP’s current downtrend. The USD is also strong in Asian markets, so today could bring more good news for the greenback.
The EUR/JPY is currently trading at 126.047, the lowest level it has been since 29 May. The euro is rather weak right now, and the rest of the week could well see it trade even lower against the JPY.
Cryptocurrency Bitcoin is trying its very best to find some buyer interest at around the 6,000 level. Media reports are hinting at more bearish news to come, but if the price breaks upward through the 6,600 level again, it could be the start of a stronger recovery.
