The dollar falls, U.K. retail sales rise higher than expected, oil extends its rally, and falling exports in Japan raise concerns. Here are four things to know in the market today, August 18.
1. The Dollar Falls to an 8-Week Low
The dollar tumbled to its lowest level in eight weeks on Thursday after the Fed’s July meeting minutes revealed that committee members were divided on the timing of future rate hikes.
The dollar index slid to 94.31, its lowest level since June 24.
Fed funds futures are now pricing in on a 9% chance of a rate increase by September. Odds were at 15% the previous day. December’s odds were at 46%.
The greenback fell against the yen to 100.27, while the euro rose to a high of 1.1332 before settling at 1.1312.
2. U.K. Retail Sales Higher Than Expected
Retail sales in the U.K. for the month of July were higher than expected. The U.K.’s Office for National Statistics reported that retail sales came in at 1.4% in June, much higher than the expected 0.2% increase. Retail sales year-on-year were up 5.9%. Analysts were expecting a rise of 4.2%.
The positive data came after better-than-expected employment and inflation data earlier in the week.
The pound climbed to a two-week high against the dollar, trading at 1.3172.
3. Oil Extends its Rally
Oil prices continued their rally on Thursday for the sixth straight session, hitting a new five-week high.
U.S. crude was up 20 cents, or 0.43%, to $46.99 per barrel. Brent, on the other hand, slipped 0.22%, or 11 cents, to $49.74 after hitting a session high of $50.05.
4. Exports Fall in Japan
Japan’s exports tumbled 14% in July, weighed down by slowing global demand and a stronger yen. July marked the tenth straight month of export declines and the biggest drop since 2009. Imports were down 24.7%, lower than the expected 20.6% decline.
