European Central Bank Meeting and the United States Dollar

European Central Bank Meeting and the United States Dollar

Let us check the market. The outcome of the European Central Bank meeting moved the euro. It was the last trading up by 0.10% to $1.142. After the release of data on the United States, the U.S. dollar index fell modestly. The euro hovered near a four-month high, ahead of the European Union conference.

Analysts say the meeting was something akin to a non-event. They said that the European Union summit overshadowed it. At that summit, European countries are forecast to vote on an $856 billion (750 billion euro) recovery fund to revive the euro growth area.

At the weekend, there was a lot of focus on the European Leaders summit. There was also a lot of emphasis on the recovery fund.

For June, domestic retail sales came in better than expected. Nevertheless, a drop in United States equities and jobless claims limited the move. Thus, in morning trading on Thursday, the safe haven United States dollar fell modestly.

The United States and Other News

Retail sales in June raised for the second consecutive month. This was according to a report from the Commerce Department. The United States dollar index is a measure of the greenback against a basket of six rivals. According to it, the last United States currency was down by 0.07% to 95.940.

A separate report from the Labor Department unveiled that 1.3 million people filed for state unemployment benefits during the week ending on July 11. This news came out on Thursday. Thus, it was slightly down from the 1.31 million in the prior period. Nonetheless, the report unveiled that a resurgence in new coronavirus cases was chipping away at the budding recovery.

The three major United States stock indexes all fell as a result, with the S&P 500 index last down by 0.64%.

Mazen Issa is a senior exchange strategist. He works at TD securities. He said that the data, in general, is constructive for United States retail sales.

This is the leading news of the market.