Dollar turns to better positions as economic data beats expectations

US dollar index

The U.S. dollar performs stronger in the precious session after the economic data, including July retail sales, beat market expectations and pushed the U.S. economy into the green zone. The dollar took half a step back from its gains against its main rivals as the trading session.

The ICE U.S. dollar index which measures the performance of dollar against a basket of six currencies, was trading more or less flat in the afternoon, and was found at 98.8170, which down from its initial spike to 94.0370 earlier in the session, but still was still higher compared with 93.7920 before the data was released.

The Euro was following closely behind which managed to regained some of its losses and was down by 0.4% at $1.1736, compared with $1.1702 after the reports were released.

The Dollar was up against the Yen and was found trading at 110.61 on Tuesday, which is up from 109.63 on Monday.

The U.S. currency continually benefits from the subsiding fears about a military showdown between the U.S. and North Korea. Tension eased further on Tuesday after the North Korea leader, Kim Jong Un, decided not to launch its missile attack on the U.S. territory Guam.

Although most of the currencies performed better in the latest market session, the British Pound tumbled in the session after the U.K. inflation came in softer than expected, answering investors’ questions regarding whether the Bank of England would soon raise its interest rates.

Sterling bought $ 1.2869, which is slightly lower than its high of $1.2971 earlier in the day and $.2962 in New York.


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