Forexlive Americas FX news wrap: US dollar climbs despite soft retail sales | Forexlive
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Markets:
Gold down $11 to $2162WTI crude oil up $1.40 to $81.11 — highs of the yearS&P 500 down 0.3%US 10-year yields up 9.8 bps to 4.29%USD leads, AUD lags
The market decided to look past economic data today and look towards next week’s Fed meeting. Bonds took the lead as they sold off, likely on speculation that the Fed will move the median dots to 50 bps this year from 75 bps. In addition, there is growing evidence that the Bank of Japan will end negative rates and other portions of its extraordinary programs.
The result was that the dollar rallied despite a softer retail sales report. Some pointed to hotter PPI and a decent jobless claims report as catalysts as well, and that’s fair.
The dollar bid was choppy immediately after the data but ultimately the buyers made a big dent, with gains around 50 pips in a relatively uniform move.
Tomorrow we get another look at the US consumer with the UMich consumer sentiment report but after the market ignored retail sales, it’s tough to imagine it will matter.
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