The dollar is gaining ground against all of its major rivals Thursday afternoon as investors take a bit of a breather from the strong rally in equities in recent days. While global equity markets continue to head higher, the rate of the ascent has less been less steep in today's session. Most of the losses that were triggered by the unexpected decision by British voters to exit the European Union have been recouped.
Following Britain's vote to leave the European Union, Bank of England Governor Mark Carney hinted at providing further stimulus in a speech on Thursday.
In remarks to business leaders, Carney said a material slowing in economic growth now looks likely to be the central forecast in reaction to the so-called Brexit.
Carney subsequently said the deteriorating economic outlook will likely require some monetary policy easing over the summer.
"The Committee will make an initial assessment on 14 July, and a full assessment complete with a new forecast will follow in the August Inflation Report," Carney said. "In August, we will also discuss further the range of instruments at our disposal."
The dollar has climbed to around $1.3225 against the pound sterling this afternoon, from an early low of $1.3495.
The U.K. economy expanded as previously estimated in the first quarter, the third estimate from the Office for National Statistics showed Thursday.
Gross domestic product grew 0.4 percent in the first quarter from previous three months, unrevised from the estimate published on May 26. It was slower than the 0.7 percent expansion seen in the fourth quarter of 2015.
Consumer confidence in the United Kingdom remained slightly soft in June, the latest poll from GfK revealed on Thursday with an index score of -1. That was unchanged from the May reading, and it beat expectations for -2.
The buck has risen to around $1.1065 against the Euro Thursday afternoon, from a low of $1.1154 this morning.
Helped by a slower decline in energy prices, Eurozone inflation turned positive in June, according to provisional data published Thursday.
Eurozone consumer prices edged up 0.1 percent in June from a year ago, offsetting a 0.1 percent fall in May, Eurostat said Thursday.
This was the first increase in five months. Prices were expected to remain flat in June.
Germany's retail sales increased for the first time in three months in May, Destatis reported Thursday. Retail sales grew 0.9 percent on a monthly basis in May, reversing a 0.3 percent fall in April. It was faster than the expected 0.6 percent increase.
Germany's unemployment declined more than expected in June, reports said citing data from the Federal Labor Agency on Thursday. The number of people out of work fell by 6,000 in June from May. Economists had forecast a decline of 5,000.
Germany's unemployment rate decreased slightly in May, preliminary figures from Destatis showed Thursday. The adjusted jobless rate dropped to 4.2 percent in May from 4.3 percent in the previous month, which was revised up from 4.2 percent estimated initially.
French consumer spending decreased unexpectedly in May, marking its second consecutive monthly fall, figures from the statistical office INSEE showed Thursday. Consumer spending dropped 0.7 percent month-over-month in May, following a 0.1 percent slight decline in April. Economists had expected a flat reading for the month.
French consumer prices rose as expected in June, preliminary data from the statistical office Insee showed Thursday. Consumer prices grew 0.2 percent year-on-year in June after stabilizing in the previous month. The increase was driven by a smaller fall in energy prices.
On a monthly basis, consumer prices edged up 0.1 percent in June, slightly weaker than a 0.2 percent rise forecast by economists.
The greenback has broken out to a 4-session high of Y103.265 against the Japanese Yen this afternoon, from a low of Y102.369.
Industrial production in Japan fell a seasonally adjusted 2.3 percent on month in May, the Ministry of Economy, Trade and Industry said in Wednesday's preliminary reading. That was well shy of forecasts for a decline of 0.2 percent following the 0.5 percent increase in April.
Japan's housing starts increased more than expected in May, figures released by the Ministry of Land, Infrastructure and Transport showed Thursday. Housing starts grew 9.8 percent in May from last year, after rising 9 percent in April. This was the fifth consecutive rise in housing starts and the biggest since June 2015. Economists had forecast the annual rate to ease to 4.8 percent.
Reflecting a rebound from a nearly two-month low, the Labor Department released a report on Thursday showing that first-time claims for U.S. unemployment benefits rose by a little more than expected in the week ended June 25th.
The report said initial jobless claims rose to 268,000, an increase of 10,000 from the previous week's revised level of 258,000. Economists had expected jobless claims to edge up to 266,000 from the 259,000 originally reported for the previous week.
With new orders and production showing significant rebounds, MNI Indicators released a report on Thursday showing that Chicago-area business activity grew much faster than anticipated in the month of June.
MNI Indicators said its Chicago business barometer jumped to 56.8 in June from 49.3 in May, with a reading above 50 indicating growth in regional business activity. Economists had expected the index to edge up to 50.5.
