Dollar rebounds on U.S

 

The US dollar has rebounded from a 15-month low after the release of US retail sales data for June. The data showed that although headline sales rose less than expected, the May number was revised higher, and core sales showed more resilience, suggesting continued consumer resilience. The UK inflation data also weighed on the pound, as it showed that inflation fell to 7.9% in June, from May’s 8.7%. While this is still above the Bank of England's 2% target, it is a sign that inflation is starting to cool. The euro also fell back, as the final reading of the June eurozone CPI is expected to confirm that inflation rose 5.5% on the year last month, a drop from 6.1% the prior month. The Bank of Japan is also expected to keep interest rates unchanged next week, which could support the yen. Overall, the dollar is expected to continue to strengthen, as the US economy is showing signs of resilience. However, the pound and euro could see some relief if inflation data continues to cool. Here are some additional points to consider: The Federal Reserve is widely expected to resume raising interest rates this month after keeping them unchanged in June. The European Central Bank is also expected to increase interest rates once more when it meets next week. The Bank of Japan is expected to keep interest rates unchanged next week. The Chinese economic recovery slowed substantially in the second quarter.