The Euro continued its rally against the U.S. Dollar on speculation Greece may modify its austerity plan after the June 17th elections in order to remain within the Euro monetary region. However, hedge funds and big investors increased speculation that the Euro will decline in anticipation of Sunday’s elections.
Meanwhile, the U.S. Dollar weakened against the majority of its money market peers as reports indicated that Retail Sales dropped in May, thereby signaling that the country’s economic growth is stalling. The greenback fell against the Yen after the U.S. Commerce Department posted a 0.2 percent decline in Retail Sales. The lackluster data increased the likelihood the Federal Reserve will implement further measures in order to boost the economy.
But the disappointing figures didn’t just affect the U.S. currency; Canada’s Dollar slipped against most of its exchange peers on concerns the U.S. economy has slowed down. The Loonie fell after reports confirmed that Retail Sales in the U.S. dipped for a second month. Canada’s currency declined in the early part of the trading session following news that Italy’s borrowing costs continued to increase during the debt auction.
South Pacific currencies depreciated on concerns over the outcome of Sunday’s upcoming Greek elections. And Australia’s Dollar traded to the downside against most of its 16 Forex counterparts as the Reserve Bank of Australia’s Governor, Glenn Stevens, suggested that the currency is overvalued. The Aussie remained under pressure as official releases showed that Consumer Confidence was at its lowest this year.