Ella 
US yields rise, sterling slips on weak UK retail sales, Australian and New Zealand dollars fall
The dollar index, which measures the greenback’s value against a basket of six major currencies, extended gains and closed at 104.35, up from 104.20 on Friday.
The dollar index received a boost after US President Joe Biden decided to end his reelection campaign and endorse Vice President Kamala Harris. The decision is seen as increasing the chances of Republican candidate Donald Trump returning to power.
Analysts believe that a Trump win is generally positive for the dollar as he favors a combination of low taxes and high tariffs. This is seen as stimulating inflation and interest rates.
US Treasury yields moved higher. The 10-year US Treasury yield climbed 4 basis points to 4.24%. The two-year US Treasury yield closed at 4.51% from an opening of 4.47%.
The USD/JPY exchange rate was little changed, remaining bid at 157.40 (157.37). EUR/USD fell to 1.0884 from 1.0898. GBP/USD fell to 1.2915 (1.2945).
AUD/USD fell to 0.6690 from 0.6707 on Friday, and NZD/USD fell to 0.6010 from 0.6045. Growing speculation that the Reserve Bank of New Zealand is about to cut interest rates has weighed on the New Zealand dollar.
EUR/USD fell to 1.0882 from 1.0897, and GBP/USD fell to 1.2915 (1.2945). Broader dollar strength weighed on the euro and sterling.
The dollar rose against Asian and emerging market currencies. USD/CNH rose to 7.2855 from 7.2775. USD/SGD rose to 1.3455 (1.3437).
Global stock markets fell. The Dow Jones fell from 40,720 to 40,295. The S&P 500 fell 0.9% to 5,510 (5,560). Japan’s Nikkei fell 1.02% to 39,695 (40,095). Australia’s ASX 200 fell from 7965 on Friday to 7905.
Data released on Friday showed that the UK retail sales month-on-month rate in June fell to -1.2% from 2.9% previously, lower than the expected -0.6%. There were no important economic data released by the United States on Friday.
