Sterling erased its post-Bank of England gains today on dovish comments made by the Bank’s Chief Economist Andrew Haldane who said the UK needed strong stimulus to protect the economy from the Brexit fall out. He proposed that the Bank prepare a package of measures by the August 4 policy meeting.

Cable slid to $1.3248 in late European session trading, falling from a high of $1.3479 reached in Asia earlier today.

The euro saw little reaction to Eurozone inflation data. The final estimate for June showed inflation rose in line with expectations at an annual 0.1% rate compared to a 0.1% drop in May. The single currency rose to a session high of $1.1148 before tumbling late in the session due to a stronger dollar on the back of upbeat US data, particularly retail sales. The euro reached as low as $1.1064 after the US data.

The greenback strengthened across the board after the release of stronger-than-expected retail sales figures. A report showed retail sales in the US rose 0.6% month-on-month in June versus the 0.1% increase expected by many economists. Meanwhile May’s number was revised lower to + 0.2% from +0.5%. The dollar rose to 106. 11 yen immediately after the retail sales release.

Other US data showed industrial output rose 0.6% in June versus a 0.2% estimate and was an improvement from May’s revised 0.3% drop.

Only the University of Michigan consumer sentiment report disappointed as the index came in at 89.5 in July’s preliminary reading, versus expectations for a reading of 93. It was down slightly from 93.5 in June’s final reading. The disappointing survey result capped the dollar’s gains.

Nevertheless, the US currency is set to end the week higher against the yen. Fading demand for safe haven assets such as the Japanese currency  due to a pick up in risk appetite this week, has placed the yen under pressure. Upbeat GDP data out of China today helped lift market sentiment while reduced political uncertainty in the UK following the appointment of UK Prime Minister Theresa May this week also helped calm markets.