U.S. dollar has resumed strength today in the face of global political risk and a suddenly hawkish Fed Chair. This movement comes after a particularly savage news conference from President Trump, wherein the president locked horns in fierce debate with members of the media for 77 minutes. The President’s continued show of strength could continue to be a catalyst for the surging dollar in these times of uncertainty abroad.
Retail sales in the U.K. came in quite light, missing expectations of a .9% increase from December with a .3% contraction from that month. This surprising development has the pound on its heels, fanning the flames of Brexit-anxiety. Is the impact of coming Brexit just now beginning to bleed into business outlook and consumer data?
Political news out of France continues to heavily impact the euro. Benoit Hamon, a Socialist Party candidate, has affirmed that he is in talks with Jean-Luc Melenchon to unite the left against the threat of the far-right Marine Le Pen. Le Pen’s populist movement has been gaining momentum in France, to the worry of those who support the united Eurozone.
EURUSD: Euro is down a bit today on political concerns, but gaining back some losses as the morning wears on so far.
GBPUSD: Sterling has retreated in the face of very weak January retail sales figures.
AUDUSD: Aussie is continuing to weaken against the greenback, as concerns mount over China’s economic growth prospects.
USDCAD: Canadian dollar is down slightly against U.S. dollar on the back of the latter’s strength.