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Dollar mixed, retail sales boost Canadian dollar

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Shutterstock photo - The dollar was mixed against the other major currencies on Tuesday, while the Canadian dollar was boosted after the release of stronger-than-forecast Canadian retail sales data for May.

During European afternoon trade, the dollar rose to session highs against the yen, with USD/JPY climbing 0.29% to 99.94, up from session lows of 99.15.

The dollar had been broadly weaker during the Asian session after data on Monday showing that U.S. existing home sales fell unexpectedly in June dampened expectations that the Federal Reserve will start scaling back its asset purchase program this year.

In Japan, the government upgraded its assessment of the economy for the third consecutive month in July, saying "areas of self-sustaining recovery can be observed."

In its monthly economic report, the government also said consumer prices are "leveling off," indicating that deflation is abating.

The dollar was fractionally lower against the euro, with EUR/USD inching up 0.06% to 1.3192.

Trade remained quiet as volumes in foreign exchange markets were lower due to the summer holidays.

Elsewhere, the dollar inched higher against the pound, with GBP/USD dipping 0.06% to 1.5349 and was higher against the Swiss franc, with USD/CHF climbing 0.26% to 0.9386.

The greenback fell to almost five-week lows against the Canadian dollar, with USD/CAD down 0.26% to 1.0306 after official data showed that Canadian retail sales comfortably beat expectations in May.

Statistics Canada said retail sales jumped 1.9% from a month earlier in May, well above expectations for a 0.4% gain, while core retail sales rose 1.2%, compared to expectations for a 0.1% increase.

The greenback was little changed against its Australian and New Zealand counterparts, with AUD/USD dipping 0.06% to 0.9243 and NZD/USD easing up 0.09% to 0.7977.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, edged up 0.04% to 82.35. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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