© Reuters. The dollar made a bearish start to the week.
Investing.com – The dollar was on the back foot Monday as soft U.S. retail sales data raised concerns over whether the strong pace of economic growth can continue.
The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.23% to 94.72.
The Commerce Department said on Monday that core retail sales fell . That confounded economists’ forecast for a 0.4% rise. The retail sales control group, which has a larger impact on U.S. GDP, beating expectations for a 0.3% rise.
“These data mean that third quarter consumers’ spending likely rose by 3.6%-to-3.8%, after a 3.8% leap in the second quarter. This uplift from the prior trend, about 2%-to-2.5%, likely is due to the tax cuts, so it won’t be sustained,” Pantheon said. “We expect sub-3% consumption in fourth quarter.”
A rebound in both the pound and euro from session also pressured the greenback even as investors digested negative news on stalled Brexit talks and ongoing friction between the EU and Italy.
U.K. Prime Minister Theresa May told Parliament Monday that while talks with the European Union had resulted in progress, the status of the Irish border has remained a critical stumbling block.
Profit-taking on dollar-denominated assets explains “why despite failing Brexit talks, persistent disagreements between EU and Italy and falling equity prices, the buck can’t find a bid,” said BK Asset management.
edged up 0.08% to $1.3166, while rose 0.27% to $1.1590.
fell 0.47% to C$1.2964 after the release of an upbeat Bank of Canada outlook survey.
fell 0.33% to Y111.83 as demand for safe-haven demand was propped up by mixed trading on Wall Street.
In emerging-market currencies, meanwhile, the Turkish lira rose against the dollar, hitting a two-month high, after Turkey on Friday released U.S. pastor Andrew Brunson.
fell 1.44% 5.778.
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