Key US figures look good: retail sales rise 0.6% m/m, better than 0.1% expected. Core sales are +0.7% instead of 0.4%. Inflation figures also look good.
The USD is slightly stronger
Retail sales:
- The control group is up 0.5%, better than 0.3% expected and on top of an upwards revision for May: 0.5% instead of 0.4%.
- Headline retail sales is up 0.6%, much better than 0.1% expected but on top of a downwards revision worth -0.3%.
- Core retail sales are up 0.7%, better than 0.4% expected and without a revision
Inflation data:
- Core CPI has edged up 0.2% m/m as expected but 2.3% y/y, above the Fed’s target of 2%.
- Headline CPI is up 0.2%, slightly below expected and 1% y/y, slightly worse than 1.1% predicted, but that can be blamed on oil prices.
- Wages are up 1.2% against 1.1% beforehand. This is a minor wage figure in comparison to the NFP one.
Currency reaction:
- EUR/USD falls some 30 pips to 1.1120 and is now flat on the day.
- GBP/USD is extending its slide and reaches 1.3325.
- USD/JPY is up to 105.86, but still hesitating.
- USD/CAD has erased some of its earlier falls and is up to 1.2880.
- AUD/USD is cooling down after the Chinese data and trades at 0.7640.
- NZD/USD is around 0.7150.
— more coming
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