Asian session review: Euro falls; Dollar gains

Data released:
08:30     United Kingdom     Retail Sales (MoM)     July     +0,8%     +0,3%     
08:30     United Kingdom     Retail Sales (YoY)     July     +0,4%     +0,1%

The dollar and yen gained against most major counterparts on speculation a report today will show U.S. inflation isn’t weak enough for the Federal Reserve to consider a third round of so-called quantitative easing.
The greenback rose against the Australian and New Zealand dollars as a slide in Asian stocks damped demand for higher- yielding assets. The Fed wrapped up its second round of bond buying, known as QE2, in June. The franc weakened against the euro and dollar on speculation the Swiss National Bank will expand efforts to curb the currency’s strength. The pound fell versus the dollar before spending data that may add to evidence the U.K. economy is losing momentum.


EUR/USD initially rose to $1.4450, but failed to hold above the figure and fell to a new session lows around $1.4375.
GBP/USD recovered from lows around $1.6480 back above $1.6500.
USD/JPY traded within Y76.50/70.

US data starts at 1230GMT with CPI and the weekly Jobless Claims. Initial jobless claims are expected to hover around 400,000 after falling to 395,000 in the previous week. Consumer prices are expected to increase by 0.4% in July after following the energy-related drop in June. AAA reported another drop in gasoline prices in the most recent month. Core prices are expected to increase by 0.2%. Shortly after, from 1235GMT, New York Fed President William Dudley is due to deliver a speech on the regional and national economic outlook in Newark.