U.S. Dollar Climbs After Solid Retail Sales Data
May 15 2018 - 5:52AM
RTTF2
The U.S. dollar drifted higher against its key counterparts in
the European session on Tuesday, as the nation's retail sales
increased in line with economist estimates in April and investors
focused on the next round of talks between China and the U.S.
taking place in Washington this week.
Data from the Commerce Department showed that the retail sales
rose by 0.3 percent in April after climbing by an upwardly revised
0.8 percent in March.
Economists had expected sales to rise by 0.3 percent.
Excluding a modest increase in auto sales, retail sales still
rose by 0.3 percent in April following an upwardly revised 0.4
percent increase in March.
Ex-auto sales have been expected to climb by 0.5 percent.
A separate report released by the New York Federal Reserve
showed an unexpected acceleration in the pace of growth in regional
manufacturing activity in the month of May.
The New York Fed said its general business conditions index
jumped to 20.1 in May from 15.8 in April, with a positive reading
indicating growth in regional manufacturing activity. Economists
had expected the index to edge down to 15.5.
The currency has been trading in a positive territory against
its major counterparts in the Asian session.
The greenback spiked up to 0.6871 against the kiwi, its
strongest since December 2017. If the greenback continues its rise,
0.67 is possibly seen as its next resistance level.
The greenback strengthened to 5-day highs of 1.2907 against the
loonie and 0.7462 against the aussie, off its early lows of 1.2792
and 0.7538, respectively. The greenback is seen finding resistance
around 1.30 against the loonie and 0.73 against the aussie.
Reversing from an early low of 0.9992 against the franc, the
greenback firmed to a 4-day high of 1.0037. Next key resistance for
the greenback is likely seen around the 1.02 level.
The greenback strengthened to 110.30 against the yen, a level
unseen since February 2. The next possible resistance for the
greenback is seen around the 112.00 level.
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary activity index decreased at a
faster-than-expected pace in March.
The tertiary activity index dropped 0.3 percent month-over-month
in March, reversing a 0.1 percent rise in February. Economists had
expected a 0.2 percent fall for the month.
The greenback approached a 5-day high of 1.3479 against the
pound, after having fallen to 1.3572 at 9:45 pm ET. The greenback
is likely to find resistance around the 1.33 region.
Data from the Office for National Statistics showed that the UK
unemployment rate remained unchanged at the lowest level since
1975.
The ILO jobless rate remained at 4.2 percent in the first
quarter, but down from 4.6 percent a year ago. This was the joint
lowest since 1975.
The U.S. currency climbed to a 6-day high of 1.1832 against the
euro, following a decline to 1.1938 at 9:45 pm ET. On the upside,
1.17 is likely seen as the next resistance level for the
greenback.
Flash estimate from Eurostat showed that Eurozone economy
expanded at a slower pace as previously estimated in the first
quarter.
Gross domestic product grew 0.4 percent sequentially in the
first quarter, slower than the 0.7 percent expansion seen a quarter
ago.
The U.S. business inventories for March is scheduled for release
at 10:00 am ET.
At 12:45 pm ET, San Francisco Fed President John Williams speaks
at the Economic Club of Minnesota May Luncheon in Minneapolis.
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