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13 May 2015
Dollar suffers on the back of weak data, again
FXStreet (Córdoba) - The US dollar took another hit and fell across the board on Wednesday following the release of disappointing economic data.
US retail sales were flat in April, while excluding autos sales rose by 0.1%. Consensus were for 0.2% and 0.5% increases for the headline and the core respectively. Separated data showed US import prices dropped by 0.3% in the same month, missing expectations of a 0.3% rise.
Signs of weakness in the US economy continue to hurt the dollar through lower expectations the Federal Reserve will hike interest rates soon.
EUR/USD climbed more than 180 pips throughout the day toward a weekly high of 1.1382. The euro was also supported by Eurozone GDP, which showed the economy grew at its fastest in almost 2 years. Gross domestic product in the Eurozone rose 0.4% in the first quarter and 1.0% YoY.
GBP/USD managed to print a fresh 5-month peak of 1.5768 as USD weakness offset a relatively dovish BoE Quarterly Inflation Report. USD/JPY fell to a 2-week low of 119.02.
Antipodean currencies were the top performers. NZD/USD recovered from a 2-month low of 0.7317 after the RNBZ removed the word "unjustified" regarding to the value of the NZD from the Inflation Stability Report released during the Asian session.
AUD/USD shrug off disappointing Chinese data and broke above 0.8100 after climbing more than 150 pips throughout the day toward a high of 0.8123.
Looking ahead, Asian session data includes New Zealand retail sales, Japan’s investment and China’s loans figures.
US retail sales were flat in April, while excluding autos sales rose by 0.1%. Consensus were for 0.2% and 0.5% increases for the headline and the core respectively. Separated data showed US import prices dropped by 0.3% in the same month, missing expectations of a 0.3% rise.
Signs of weakness in the US economy continue to hurt the dollar through lower expectations the Federal Reserve will hike interest rates soon.
EUR/USD climbed more than 180 pips throughout the day toward a weekly high of 1.1382. The euro was also supported by Eurozone GDP, which showed the economy grew at its fastest in almost 2 years. Gross domestic product in the Eurozone rose 0.4% in the first quarter and 1.0% YoY.
GBP/USD managed to print a fresh 5-month peak of 1.5768 as USD weakness offset a relatively dovish BoE Quarterly Inflation Report. USD/JPY fell to a 2-week low of 119.02.
Antipodean currencies were the top performers. NZD/USD recovered from a 2-month low of 0.7317 after the RNBZ removed the word "unjustified" regarding to the value of the NZD from the Inflation Stability Report released during the Asian session.
AUD/USD shrug off disappointing Chinese data and broke above 0.8100 after climbing more than 150 pips throughout the day toward a high of 0.8123.
Looking ahead, Asian session data includes New Zealand retail sales, Japan’s investment and China’s loans figures.