Aisha Amajida

Recent US economic data points consistently show a downturn, indicating a deteriorating situation faster than the market's expectations.

The latest inflation data in the UK stabilized both the pound sterling and the US dollar. This is because the increase in inflation has caused a risk-off sentiment.

GBP/USD is within its highest range since June 2022, although it has not yet reached the record touched at the end of last week.

Better US economic data usually motivates a strengthening of the US dollar. However, the situation today is the opposite.

The growth of US retail sales fell from 5.88 percent to 2.94 percent, marking the worst performance since 2020.

The US PPI inflation showed the lowest year-over-year growth since January 2021, which put pressure on the US dollar and boosted EUR/USD.

BoC has signaled its readiness to raise interest rates again, as the service sector prices are expected to boost Canada's inflation outlook.

EUR/USD retests the 1.1000 thresholds, while GBP/USD tests the 1.2500 level. The US Dollar is also moderately under pressure in other major currency pairs.

The market is concerned that tomorrow's US inflation data will show a sharper decline, affecting the US dollar exchange rate.

The US dollar remains stable around 102.00, after a slight increase following the release of Nonfarm Payrolls data last week.