2年期美国国债收益率下跌约1.2个基点，至4.24%。After the mixed retail sales data from the USA was released, the Bloomberg Dollar Index maintained a slight upward trend as traders awaited the Federal Reserve's interest rate decision on Wednesday. Political instability in Canada continues, with the Canadian Dollar falling to its lowest level since the COVID-19 pandemic.
The Bloomberg Dollar Index rose by less than 0.1%.
In November, overall retail sales in the USA increased by 0.7% month-on-month, compared to an estimated growth of 0.6%; core indicators excluding Autos and RBOB Gasoline rose by 0.2%, against an estimate of 0.4%.
The yield on the 2-year U.S. Treasury bond fell by about 1.2 basis points to 4.24%.
Swap traders expect a roughly 90% chance of the Federal Reserve cutting rates by 25 basis points on Wednesday.
"Consumer spending overall remains resilient; consumption continues to drive economic growth, but future trajectories will depend on whether the labor market remains robust or weakens further," wrote Citi economists Gisela Hoxha and Andrew Hollenhorst.
The USD/CAD rose by as much as 0.6%, with an intraday high of 1.4324, the highest level since March 2020.The Canadian dollar is under pressure after Canadian Finance Minister Chrystia Freeland resigned from Justin Trudeau's cabinet, increasing the likelihood of an early election.
"The political economy is clearly a force for disruption, creating more volatility and more uncertainty, which is first reflected in the Exchange Rates," said Mark McCormick, Global Head of Forex and Emerging Markets Strategy at TD Securities in Toronto.
GBP/USD rose by 0.3% to 1.2715, with an intraday low of 1.2666.
Data shows that wage growth in the United Kingdom accelerated for the first time in over a year.
The British Pound 1-month risk reversal is about 15 basis points, with demand for Put Options higher than for Calls, remaining in a consolidation phase this month.
USD/CHF retraced its gains, falling 0.3% to 0.8920, after previously rising by 0.4%, with an intraday high of 0.8975, the highest since July 16.
USD/JPY fell 0.6% to 153.29.
Strategists warn that further depreciation of the yen could trigger official verbal intervention, putting greater pressure on the Bank of Japan regarding interest rate hikes.
Note: Some of the above information comes from forex traders familiar with the trading situation but unwilling to be named for public comment.
