XM tillhandahåller inte tjänster till personer bosatta i USA.

Dollar steadies, sterling eases ahead of inflation data

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>FOREX-Dollar steadies, sterling eases ahead of inflation data</title></head><body>

Updates prices at 0510 GMT

By Rae Wee

SINGAPORE, June 19 (Reuters) -The dollar recovered some ground on Wednesday after soft U.S. retail sales data reinforced bets of imminent Federal Reserve rate cuts, while sterling dipped ahead of a reading on UK inflation due later in the day.

U.S. retail sales barely rose in May and data for the prior month was revised considerably lower, data showed on Tuesday, suggesting that economic activity remained lacklustre in the second quarter.

That knocked the greenback lower in the immediate aftermath, though its losses were limited against a basket of currencies as the euro, which holds the largest weight in the dollar index =USD, continues to be weighed down by political jitters in France and the wider bloc.

The euro EUR=EBS was last marginally lower at $1.0736, while the dollar index =USD steadied at 105.28.

"We thought that the U.S. retail sales would be weak, and it was," said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia (CBA).

"Things are finally deteriorating. It looked like the U.S. consumer was never going to slow down, but looks like that's exactly what happened now."

Markets are now pricing in a 67% chance the Fed will begin easing rates in September, according to the CME FedWatch tool, with nearly 50 basis points worth of cuts priced in for the rest of the year. FEDWATCH

Sterling GBP=D3 fell 0.02% to $1.2706 ahead of UK inflation data later on Wednesday, which comes before a policy decision by the Bank of England (BoE) on Thursday, where rates are expected to remain on hold.

"Because of base effects from a year ago, because of falls in energy, electricity prices in the UK, the headline will come down a long way," CBA's Capurso said.

"But what the BoE and the markets really care about is services inflation...and the BoE has said they really want that to come down further, and that is linked very heavily to wages and a tight labour market."

The Australian dollar AUD=D3 was a notable outperformer against the greenback, also helped by a hawkish stance from Reserve Bank of Australia (RBA) Governor Michele Bullock on Tuesday in a press conference following the central bank's rate decision.

The Aussie was last 0.12% higher at $0.6664, extending its 0.66% gain from the previous session. Meanwhile, the New Zealand dollar NZD=D3 fell 0.19% to $0.6133.

Elsewhere, the yen JPY=EBS was little changed at 157.83 per dollar, as it continues to be pressured by stark interest rate differentials between Japan and the U.S., in particular.

Minutes of the Bank of Japan's (BOJ) April policy meeting on Wednesday showed policymakers debated the impact a weak yen could have on prices, though the release did little to move the market as investors looked ahead to the next BOJ meeting in July.

BOJ Governor Kazuo Ueda said on Tuesday the central bank could raise interest rates next month depending on economic data available at the time.

"The bank's outlook for economic growth and price pressures suggests, in our view, that further policy normalisation is on the horizon," Wells Fargo economists said of the BOJ in a note.

"However, the fact that they have not made meaningful policy change since lifting the policy rate in March, and that they are taking a slow approach to the process of reducing bond purchases, suggests to us that forthcoming policy change will be rolled out in a gradual manner."

Reporting by Rae Wee; Editing by Jamie Freed and Jacqueline Wong


Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.

Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.

Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.

Riskvarning: Ditt kapital riskeras. Hävstångsprodukter passar kanske inte alla. Se vår riskinformation.