The dollar rose
against the euro
for the first time in four days after an unexpected surge in U.K. retail sales led traders to
sell the 15-nation currency versus the greenback and buy the pound.
The pound increased to a two-week high versus the euro
and advanced against the dollar as U.K. retail sales increased in May by the
most since records began in 1986. The Office for National Statistics said in London that British retail
sales rose 3.5% last month after falling 0.3% in April. The median forecast of
37 economists was for a 0.1% decrease.
Futures on the Chicago Board of Trade show a 12%
chance the Fed will increase the 2% target rate for overnight lending between
banks by a quarter-percentage point on June 25, compared with 22% odds a week
ago.
The U.S. currency has traded in a range of $1.53 to $1.56 per euro this week
after last week's 2.5% increase, the biggest since 2005.
Canada's dollar rose against its U.S. counterpart for a
fourth day, its longest winning streak in a month, after a government report
showed inflation accelerated in May on fuel prices.
EUR/USD printed high on$1,5585 before sliding to support on
$1,5460.
GBP/USD rose from $1,9585
to $1.9740 amid strong statistic releases.
USD/JPY was boosted by bids
on Y107,40 to session highs on Y108.04.
Friday the only report will be Canadian retail sales figures
at 12:30 GMT.