The dollar has given back some of its early gains against both the Euro and the pound sterling Tuesday afternoon, and has recovered some of its early losses against the Japanese Yen. Overall, the dollar is currently little changed against its major rivals. Investors are awaiting the release of several important economic reports later this week, including the retail sales report for May on Thursday.
Stockpiles held by wholesalers rose in April, according to government statistics released on Tuesday. The increase was sharper than economists’ had predicted.
The U.S. Commerce Department revealed that wholesale inventories rose 0.4 percent in April compared to the previous month. The figure was up 4.5 percent compared to April 2014 levels. Economists had expected the figure to rise by 0.2 percent.
The Greek government has presented a new budget proposal to its creditors so as to unlock funds ahead of yet another summit in Brussels on Wednesday.
Greek Prime Minister Alexis Tsipras will attend an EU summit with South American leaders, German Chancellor Angela Merkel and French President Francois Hollande.
Greece will work to bridge the gap on state finances, putting forward alternative proposals where demands are irrational and unacceptable, Tsipras told the Italian newspaper Corriere Della Sera.
He said Athens cannot accept the demand of creditors on pensions. If Greece gets something good out of these negotiations – for example, an easing of austerity – the road will open for everyone, Tsipras added.
The dollar climbed to a high of $1.1214 against the Euro Tuesday morning, but has since retreated to around $1.1285.
The Eurozone economy grew as initially estimated in the first quarter underpinned by widespread contribution from all sub-components.
Gross domestic product expanded 0.4 percent, in line with the estimate published on May 13. The 19-nation currency bloc grew by revised 0.4 percent in the fourth quarter and 0.2 percent in the third quarter of 2014.
On a yearly basis, economic growth improved to 1 percent from 0.9 percent a quarter ago. The annual growth rate also matched flash estimate.
Germany’s labor costs growth quickened in the first quarter of 2015, reaching the highest since first quarter of 2013, figures from the Destatis showed Tuesday. Labor costs per hour worked consisting of gross earnings and non-wage costs grew a calendar adjusted 3.2 percent year-on-year in the first quarter, faster than the revised 2.1 percent rise in the fourth quarter. This is highest rate of growth since first quarter of 2013, when costs rose 3.9 percent.
Germany’s manufacturing turnover increased for the first time in three months in April, preliminary figures from Destatis showed Tuesday. Manufacturing turnover rose a seasonally and working-day-adjusted 1.2 percent month-over-month in April, reversing a 0.3 percent fall in March, which was revised from a 1.0 percent decrease estimated earlier.
The buck rose to an early high of $1.5256 against the pound sterling Tuesday, but has since eased back to around $1.5385.
The U.K. trade deficit narrowed more than expected to a 13-month low in April, the Office for National Statistics showed Tuesday. The visible trade deficit narrowed by GBP 2.1 billion to GBP 8.6 billion in April, the smallest shortfall since March 2014. This was also the largest monthly fall since June 2013. The deficit was forecast to narrow to GBP 9.9 billion.
Like-for-like sales in the United Kingdom were flat on year in May, the British Retail Consortium said on Tuesday. That missed forecasts for an increase of 1.2 percent on year following the 2.4 percent contraction in April.
The greenback slipped to a 3-session low of Y123.859 against the Japanese Yen Tuesday morning, but has since rebounded to around Y124.360.
Japanese consumer sentiment fell unexpectedly in May, survey results from the Cabinet Office showed Tuesday. The consumer confidence index dropped to a seasonally adjusted 41.4 in May from 41.5 in April. It was forecast to rise to 41.9.
The material has been provided by InstaForex Company – www.instaforex.com