The US Dollar edged higher today due to several overnight events. First and foremost for financial markets was the interview with US Fed Chairman Jerome Powell, which disappointed traders hoping for guidance. Powell noted easing inflation in the second quarter of the year and added that an unexpected weakening in the labor market would merit a reaction from policymakers. Nevertheless, he refused to provide clear answers about upcoming rate cuts, repeating that decisions will be made meeting by meeting.

In Milwaukee, former US President Donald Trump took the stage after his shooting over the weekend, announcing that Ohio Senator J.D. Vance will be his running mate. Canadian CPI was released this morning, showing a slowdown in June, while US retail sales came in stronger than expected at 0.4%, a larger gain than the 0.1% forecast.

EUR/USD is lower on the day after the stronger US retail sales numbers. Meanwhile, a mixed German ZEW Survey limited the Euro’s progress. The survey showed economic sentiment in the country dropped to 41.8 in July from 47.5 in June, also missing expectations. The Eurozone index was also worse than anticipated, declining to 41.8. On a positive note, the assessment of the current situation in Germany improved to -68.9 from the previous -73.8, better than expected.

GBP/USD is lower on the day following a general theme of some USD strength. The cautious market mood helped the USD find a foothold at the beginning of the week, causing GBP/USD to correct lower from the highest level it touched in nearly a year. On Wednesday, the UK's Office for National Statistics will publish Consumer Price Index (CPI) figures for June, which could influence market expectations regarding the timing of the Bank of England's rate reduction. Ahead of this data, GBP/USD's action could remain subdued.

USD/CAD is slightly higher on the day after a slowdown in Canadian CPI. The data further raises the prospect of the Bank of Canada cutting its key interest rate again at its July 24 policy meeting, after already cutting its policy rate by 0.25% to 4.75% in June.