USD shows some strength despite disappointing retail sales data
Daily Currency Update
The US Dollar Index (DXY) showed some strength this morning, initially rising from yesterday’s close of 105.331 before the DXY dipped to below yesterday’s close at 105.283. In data news, month-over-month Core Retail Sales data, which measures the change in the total value of sales at the retail level in the US, came in lower than expected at 0.1% versus the expected 0.2%. Similarly, month-over-month Core Retail Sales, excluding automobiles, came in lower than expected at -0.1% versus the expected 0.2%. The USD/CHF pair also showed a fresh three-month low near 0.8830 after weak US Retail Sales data. The USD gained strength this morning against EUR, GBP, CAD, and JPY while showing a slight weakness against AUD and MXN.Key Movers
In Eurozone news, the EUR core Consumer Price Index (CPI) year-over-year, which measures the average change in the prices for consumer goods and services, came in as expected at 2.6% causing little change to the euro. The EUR was up slightly against the USD and CAD so far this morning.The Reserve Bank of Australia (RBA) held interest rates at 4.35%. The AUD was up so far this morning against both the CAD and USD amid the RBA announcement.
The Canadian dollar was up so far today against the GBP and USD. In oil news, West Texas Intermediate (WTI) crude oil was up by around 0.44% this morning to the 80.726 level. This gained on yesterday’s close of 80.343 and could be adding strength to the commodity-linked Loonie.
Expected Ranges
- EUR/USD: 1.0709 - 1.0746 ▲
- GBP/USD: 1.2668 - 1.2715 ▲
- AUD/USD: 1.5048 - 1.5145 ▲
- USD/CAD: 1.3709 - 1.3756 ▼