The dollar fell against a range of major rivals on Monday, after hitting its biggest weekly gain in a single month last week, as investors turned to US retail sales for June.
The dollar index, which measures the strength of the greenback versus a basket of other major currencies, fell 0.15% to trade at 94.30 points. The index rose 0.7% last week, the biggest weekly gain since mid-June. Demand for the dollar continued to be supported, as the risk of further possible trade spikes and tensions between the United States and China kept investors cautious and weak economic data from China.
China’s economy has slowed, in line with second-quarter economic forecasts, suggesting that a trade row with the United States may be a barrier to China’s economic growth, data showed yesterday. China’s GDP rose at an annual rate of 6.7 percent in the three months to June, down from 6.8 percent in the first quarter.
China also said on Monday it had lodged a complaint with the World Trade Organization (WTO) on the United States threat to impose 10 percent customs duties on the $200 billion worth of Chinese imports into the United States.
The move came after US President Donald Trump warned European leaders over the weekend by announcing that the EU was an “enemy” given how it dealt with the United States. Thus, the single currency rose to its highest level today against the weaker dollar, leading the EUR / USD pair to rise 0.2%, trading at $1.1709 per EUR.
The dollar did not change much against the Japanese yen, which is a safe haven for investors, as the USD/JPY pair traded at 112.38 yen per dollar. Meanwhile, the pound gained 0.21% to hit 1.3263 per pound, as investors continue to monitor the ongoing developments of Britain’s exit from the European Union, before the issuance of more votes in the British Parliament this week. The British Prime Minister, Theresa May, has faced a rebellion by some militants in favor of Brexit.
Investors were looking to June retail sales figures in the US later throughout the day. The International Monetary Fund (IMF) is also due to release its latest World Economic Outlook report later on Monday.
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