Mostly disappointing data from the US: retail sales remained unchanged in April instead of rising. However, the number for March was revised by 0.2% to 1.1%. Core sales are up 0.1%, significantly below predictions, but also here, the previous number was revised up +0.3% to +0.7%.
So while on balance things are not terrible, the present is more important than the past and the dollar doesn’t like it.
Also other measures excluding various components show the same picture: stronger March than reported but a very worrying April. Import prices also fall short of predictions with -0.3% instead of +0.3% expected.
The US was expected to report a rise of 0.3% in retail sales for the month of April after +0.9% in March (before revisions). Core sales carried expectations for +0.4% after the same rise beforehand.
Currencies were mixed towards the publication, with the jumping up and falling back down.
A large part of the US economy is consumption. During the cold winter months, the volume of sales disappointed time after time and has weighed heavily on the economy and eventually on jobs. A rebound is certainly needed here.
Currencies:
- EUR/USD traded around 1.1220 amid less than impressing German growth. EUR/USD is at 1.1282.
- GBP/USD was around 1.5630, suffering from the BOE Inflation Report. Cable is getting back towards 1.57.
- USD/JPY traded under 119.70 and now at 119.40.
- USD/CAD slipped under 1.20 and was around 1.1974. Crude reserves will be published later on. The move extends lower to 1.1955. More: Canadian dollar at new highs against the USD
- AUD/USD finally enjoyed the Chinese rate cut and broke back above 0.80 to 0.8040. The Aussie is up to 0.8072. More: AUD/USD approaches to 0.81 – extending gains on poor US retail sales
- NZD/USD staged a recovery of sorts after being hit hard earlier in the week. Kiwi was around 0.7450. The recovery expands to 0.7470.
More: Time To Fade EUR/USD Correction – parity before year end – SEB
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