The US dollar traded higher across the board following data that signaled retail sales for the month of October increased 1.7% versus consensus of 1.5%. EUR/USD is trading at levels not seen in 16 months and below the 1.1350 level. Markets are optimistic regarding tensions between the US and China, which pushed the Chinese yuan to its best level since May.
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November 16, 2021
EUR/USD 1.1345 GBP/USD 1.3432 USD/CAD 1.2545 AUD/USD 0.7323 USD/JPY 114.52 USD/CNH 6.3950 USD/ILS 3.0940 USD/MXN 20.7405 USD/CHF 0.9283 USD/INR 74.3720 USD/BRL 5.4820 USD/SGD 1.3555 USD/DKK 6.5525 USD/SEK 8.8520 USD/NOK 8.7180
The Bloomberg dollar index is up nearly 0.5% while 10-year Treasury yields are steady at 1.62%. Retail sales for the month of October showed an increase of 1.7%, higher than estimates of 1.5% and the highest since March.GBPSterling jumped nearly 0.43% versus the US dollar before settling back with only a small gain. Data out of the UK showed positive trends for labor that support the case for the Bank of England to hike interest rates at its next meeting in December.EUREUR/USD dropped to fresh 16-month lows as monetary policy divergence between the Federal Reserve and the European Central Bank is in focus. Technical traders point to next support at $1.1290.CADCAD trades slightly lower following the strong US retails sales data, while Canadian housing starts in October fell for a fifth straight month. Yesterday, Bank of Canada Governor Tiff Macklem stated that while there is still substantial monetary policy needed, the central bank is “getting closer” to increasing interest rates.ASIA/PACIFICUSD/JPY climbed 0.3% following the strong data out of the US.
The Chinese yuan strengthened to its highest level since May on optimism that tensions between US and China will ease following the leaders' summit.
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