The US dollar is broadly weaker, and stocks are experiencing significant pressure. In the UK, slightly higher than expected CPI figures have reduced speculation of a rate cut by the Bank of England on August 1, lifting sterling above $1.30 to a new high for 2024. The euro has also strengthened, reaching approximately $1.0945, its highest level in four months. Equities in Asia were mixed, but European stocks have declined, and US index futures are sharply lower by about 1.0%. Gold has extended its record high, slightly surpassing $2482 today. September WTI is trading within a narrow range above $79.40, with yesterday's low near $79.20, its lowest in nearly a month.

Asia Pacific Markets
Despite indications of intervention by Japanese officials last Thursday and Friday, the dollar hit session highs yesterday during early North American trading, nearing JPY158.85 before the release of the retail sales report. Today, remarks by Japan’s digital agency head, Kono, who may challenge Prime Minister Kishida later this year, criticized the yen's weakness. Separately, former President Trump, in a Businessweek interview, criticized Japan for benefiting from a weaker yen. The dollar has since edged lower against the yen without the sharp volatility typically associated with intervention.

European Markets
After briefly trading above $1.0920 on Monday to reach a four-month high, the euro consolidated at lower levels yesterday, dropping to almost $1.0870 following a stronger-than-expected US retail sales report. Today, the euro has been bought up again, pushing it to nearly $1.0950 in European trading.
The UK reported a 0.1% increase in June CPI earlier today, keeping the year-over-year rate steady at 2.0%. Core inflation and services inflation remained unchanged at 3.5% and 5.7%, respectively. UK producer prices were softer than expected. Following a brief consolidation earlier this week, sterling surged to $1.3045 today, marking a new high since last July.

American Markets
US retail sales exceeded expectations last month, with retail sales excluding autos and gasoline rising an impressive 0.8%. Additionally, May's 0.1% gain was revised to 0.3%. This positive data bodes well for Q2 US GDP, where consumption likely improved from Q1's 1.5% to approximately 2.0% on an annualized basis. The Dollar Index has fallen below the 104.00 support level for the first time in three months, with the 103.55 area representing the 50% retracement of this year's gains. The next retracement level (61.8%) is just below 102.90.