Forexlive Americas FX news wrap: US dollar climbs after retail sales | Forexlive
Markets:
- Gold up $23 to $1977
- WTI crude oil up $1.59 to $75.74
- US 10-year yields flat at 3.79%
- S&P 500 up 0.7%
- CHF leads, NZD lags
Retail sales was the marquee event of the day but the data was something as a curve ball. The dollar initially dipped on the headline because it was soft but the ‘control group’ was strong, including a positive revision and price action quickly reversed. The dollar strengthened from there and held the gains on most fronts throughout the day.
A strong bid in European fixed income weighed on the euro and pound. That threatens to end an 8-day rally in the euro but it will be close with EUR/USD down just 4 pips at the time of writing. Cable felt more selling pressure in a slide to 1.3029 but bids arrived well and of the figure to cushion the dip.
USD/JPY touched 137.71 on retail sales selling and stayed soft as equities opened without an life but, once again, the BTD crowd arrived and took tech stocks up 1% to help the pair to 138.87.
The commodity currencies were a mixed bag. The Canadian dollar fell early but quickly turned around and was near the top of the FX leaderboard as oil prices rallied. USD/CAD rose above yesterday’s high of 1.3233 and ran stops before falling to 1.3171. Canadian CPI was on the soft side but it didn’t have a lasting effect.
NZD/USD was particularly soft ahead of today’s pivotal CPI report. The consensus is for a +1.0% q/q reading and that will be one to watch.