EUR/USD
EUR/USD moved slightly higher on Tuesday, as China spooked foreign exchange markets worldwide with an unexpected devaluation of the yuan, sparking concerns of a potential global currency war. Separately, Greece agreed on the framework of a multi-year, €86 billion bailout from its international creditors, one officials hope can be completed before the deadline for a critical repayment of a loan expires next week. The deal comes nearly a month after the sides revived talks following a last-minute, historic accord in Brussels. Without the deal, it was feared the cash-strapped nation could default on its sovereign debt and bolt out of the euro, triggering possible contagion throughout the zone.
GBP/USD
British retail spending grew at a slower annual rate in July after recording some of the fastest growth in two years the month before, as wet weather caused Britons to put barbecue plans on hold. The British Retail Consortium, an industry body, said retail spending increased by 2.2 percent year-on-year last month -- near its long-run average -- after rising 2.9 percent in June. Food sales suffered a rare fall after wetter weather than in 2014 knocked spending on barbecue items, but spending on furniture and other household goods grew strongly, which the BRC attributed to a continued rise in house prices.
USD/JPY
The yen held slightly stronger after central bank minutes were released and an index of company prices cast shadows on hopes for sustained inflation. The Bank of Japan saw some members question the sustained impact of aggressive easing on the pace of yen weakening and inflation expectations in the Wednesday release of the July minutes of the nine-member board. At least two members of the board suggested that inflation expectations have either weakened or are lower, something BoJ Governor Haruhiko Kuroda told reporters after the July meeting that "some board members" were more cautious about their inflation outlook.
