The US dollar was able to advance against its forex peers despite weaker than expected US economic reports. Headline retail sales fell 0.3% instead of posting the projected 0.1% uptick while core retail sales rose 0.2%, lower than the estimated 0.4% increase. Meanwhile, headline producer prices fell 0.1% instead of rising by 0.3% and core PPI was down 0.1% as well.
EURUSD finally broke below its tight consolidation around 1.1400 and fell to the 1.1275 area, GBPUSD is down to the 1.1450 minor psychological mark, USDJPY rallied back above the 109.00 handle, and USDCHF surged past .9600 to a high of .9668. For today, US CPI readings are up for release and analysts are expecting to see 0.2% gains for both headline and core figures.
EUR pairs under selling pressure, GBP lags
European markets seem to be on slightly shakier footing, as the euro and pound lagged behind their currency counterparts. Euro zone industrial production slumped 0.8% versus the projected 0.6% contraction. The BOE interest rate decision and MPC meeting minutes are lined up for today, with downbeat remarks expected to keep the pound’s gains limited.
EURJPY is nearing support at the 123.00 handle, GBPJPY got rejected at the 155.00 resistance and is down to 154.75, EURGBP is hovering above the .7900 handle, EURCAD reached support at 1.4400, and GBPCAD is down to the 1.8200 mark.
Data from the UK has been mostly weaker than expected for the past few weeks, with the exception of Tuesday’s upbeat CPI releases. In addition, the IMF has been looking closely into the risks posed by a potential Brexit, adding to the drag on GBP pairs.
BOC holds, AU jobs upbeat
As expected, the Bank of Canada decided to keep interest rates unchanged at 0.50% in their latest policy decision. Policymakers also downgraded their outlook for the economy, citing weaker than expected business investment in the energy sector, but refrained from jawboning their strong currency.
In Australia, employment data turned out better than expected, as the economy added 26.1K jobs in March and brought the unemployment rate down from 5.8% to 5.7%. Analysts had been expecting to see a meager 18.6K rise in hiring and an increase in joblessness to 5.9%.
AUDUSD is up to the .7660 handle, AUDJPY rallied close to 84.00, USDCAD is pulling up to 1.2850, and CADJPY is testing the 85.00 major psychological resistance.
To contact the reporter of the story: Samuel Rae at email@example.com