EUR/USD
EUR/USD surged more than 1% extending considerable gains from the prior session, as currency traders analyzed dovish minutes from the Federal Open Market Committee's July meeting, which provide support for a potential delayed interest-rate hike. Elsewhere, Alexis Tsipras formally resigned from his position as Greek prime minister on Thursday, opening the door for snap elections in late-September. The resignation came one day after Greece received the first tranche of a €86 billion bailout from its international creditors, deemed necessary to stave off bankruptcy. Tsipras, who was elected seven months ago, was forced to abandon his Syriza party's anti-austerity platforms in order to secure a critical multi-year bailout through the European Stability Mechanism.
GBP/USD
The pound slumped to session lows against the dollar on Thursday after data showing that retail sales rose less than expected in July, sparking concerns over the outlook for consumer demand. The Office for National Statistics said retail sales rose just 0.1% last month and were up 4.2% from a year earlier, as auto fuel sales fell. Economists had expected a monthly increase of 0.4% and an annual gain of 4.4% Core retail sales, which exclude fuel sales, were up 0.4% from a month earlier and rose 4.3% on a year-over-year basis. Both figures were in line with expectations. The U.K. economy is heavily reliant on consumer demand for growth.
USD/JPY
The yen was slightly weaker on Thursday as investors noted little data on the calendar but with markets still focusing on the yuan, the Shanghai Composite Index, and the remnants of last night's U.S. CPI and FOMC Minutes. USD/JPY changed hands at 123.92, up 0/09%, while AUD/USD traded at 0.7349, up 0.01%. The latest Federal Reserve meeting highlighted concern over the state of the global economy, driving markets to question the likelihood that the Fed will raise rates next month. The minutes showed policymakers continued to express broad concerns about lagging inflation and the weak world economy even as the U.S. job market improved further. Market expectations for a Fed hike in September fell from one in two to roughly one in three after the minutes were published.
