US retail sales beat expectations driving the dollar higher against other major currencies
Kathryn Garvey | June 14, 2019
"You cannot shake hands with a clenched fist."Indira Gandhi
June 14, 2019
EUR/USD 1.1242 GBP/USD 1.2627 USD/CAD 1.3367 AUD/USD 0.6884 USD/JPY 108.39 USD/CNH 6.9351 USD/ILS 3.5975 USD/MXN 19.1469 USD/CHF 0.9967 USD/INR 69.8000
USDThe greenback gained against the majors today after better than expected retail sales were announced. Retail sales beat expectations at 0.5% vs 0.4% expected. This may give the Fed reason to pause a possible rate cut in the near term. Michigan Consumer Sentiment Index will be released today.GBP
The pound remained under pressure today after an expectedly quiet day in the UK. Reports have emerged that Conservative leader hopefuls are in private talks to join forces to ensure current favorite, Boris Johnson, is not elected. Johnson has said he plans to leave the EU by Oct. 31 and while an agreement is preferred, has not ruled out a hard Brexit.EURAfter strong US data, the euro dollar pair broke below 1.1251 – a minor support level. Prior to the release, fundamental support for the euro was limited, which made it easier for the strength of the dollar to have a greater impact. European investors are looking towards the ECB’s comments to see if they take a more dovish stance on economic policy as data out of the eurozone continues to disappoint. German wholesale prices and French inflation missed expectations.CADThe loonie was mixed amongst G-10 currencies. WTI crude prices dropped slightly after the International Energy Agency said global oil supplies will outweigh demand and squeeze OPEC in 2020. The loonie is slightly weaker against the USD after upbeat data out of the US.ASIA/PACIFICChinese industrial output slowed to 5% in May vs 5.4% in April – the slowest pace since 2002. Fixed asset investment slowed to 5.6% vs 6.1%. Retail sales accelerated to 8.6% from 7.2% YoY, helped by a holiday weekend. Weak data may lead China to implement more stimulative measures.
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