Market participants look to US Retail Sales today for direction on currency pairs against the greenback. Core Retail Sales m/m for April posted a 0.3% worse than the consensus of 0.5%. Also released at 8:30 am eastern time was the NY Empire State Manufacturing Index the survey is a vital barometer of the manufacturing industry in New York state, and signaling to the market how well companies are adjusting to economic conditions, by factoring in spending, hiring, and investment. Expected was a reading of 20.1 and the survey was well above the 15.1 better than previous and consensus. Mid-morning we will have housing numbers, and business inventory survey figures reported. Housing is expected flat at 69, while inventories are projected at 0.3% a lower reading than the previous month of 0.6
Federal Reserve member Kaplan in an 8 am speech this morning said he is watching the yield curve and would not want to inadvertently invert. A June hike according to the market is a done deal at 97%, the focus turns to September and December which are 68% and 42% factored in respectively. Market participant like to get ahead of themselves so the anticipation of a hike in September is accelerating.
The USD has moved higher against its G10 counterparts as market participants see the gap on trade talks between the US and China widening. This is sending equity market recoiling and futures a pointing to much lower open. Traders are moving for equities to treasuries the 10-year Treasury note pushed back above 3%.