USD retreated from the 9-month high as market sentiment improved

USD retreated from its 9-month high on Monday against its major counterparts. The uplift has been primarily supported by the positive sentiment from rising base metal prices. China, the world’s top base metal consumer, reported no new COVID case today. Disease control has been quite successful and cheered the APAC market to some degree. On the other hand, South Korea and Vietnam have both extended their measures on lockdowns. Japan tripled its COVID tests as daily new infections hit a new record.

The UK and Canada have both released their latest retail sales data. Sales volume in the UK fell by 2.5% in July compared with June. It was the biggest drop since January. Economists had forecasted a 0.4% increase. GBPUSD dropped over the weekend but has managed to gain slightly on Monday, currently trading at 1.3645. In Canada, retail sales rose by 4.2% in June as shops reopened and returned to business. CADUSD rose by 0.40% today, currently trading at 0.7831.