Forex Daily Recap – USD at 9-Day High with Strong Retail Data

USD Index

The Greenback that remained capped under 97.08 levels in the morning showcased a breakthrough in the early European session. The USD Index knocked off 97.44 levels marking 9-days high after the release of robust US data. May Retail Sales Control Group came out at around 12:30 GMT. The market had expected the figures to report an in-line number with the previous 0.4%. Anyhow, the actual reports recorded 0.5%, 0.1% higher than expectations. Also, the MoM May Industrial Production came out as 0.4% in place of 0.2% consensus estimates.

However, the speed of Greenback upliftment slowed down as the June Michigan Consumer Sentiment Index missed forecasts. The Street analysts had expected the Sentiment Index to report as 98.0 over previous 100.0. But, the reports were slightly lower than estimates reporting near 97.9. Today’s positive US data seemed to mitigate the speculations over a probable Fed rate cut.

EUR/USD

After sliding for three days in a row, the Euro pair touched the 7-days bottom mark. The plunge in the EUR/USD pair came after the immediate USD Index upsurge. The pair had made the opening on Friday near 1.1279 levels. Laterwards, the Fiber showcased a fake upside move touching 1.1290 levels in the early hours. However, a slump rally was no far, and the pair started slipping over poor Euro-specific data release. German May Wholesale Price Index reported below estimates. Also, Italian Industrial data and CPI figures recorded weaker reports. During the early European session, higher-than-estimated US data added more downward pressure on the pair. The Fiber dropped 0.66%, reaching near 1.1214 levels at around 16:03 GMT.

USD/JPY

The Ninja initiated trading today near 108.32 levels and remained quite silent in the early hours. The USD/JPY pair slightly went south laterwards after the release of Japanese April Capacity Utilization data. This data reported 1.4% higher than the consensus estimates of around 0.2%.  In addition to that, the April YoY Industrial Production data was in-line with the market expectation of about -1.1%.

Later the day, the US Retail Sales figures and Industrial Production data reported above the market hopes. Following sound US economic data, the USD/JPY pair displayed a significant jump from 108.20 levels to 108.50 levels. Also, the US 10-year bond yields appeared to recover from the earlier incurred losses remaining flat for the day.

USD/CNY

The Chinese Yuan pair continued to maintain the uptrend started on June 12. The pair had begun day’s trading session near 6.9217 levels. And, in the late afternoon session, the pair was taking rounds near 6.9255 levels marking day’s high. The pair was testing this intense resistance levels but failed to do so. Mixed Chinese data released at around 07:00 GMT kept the pair’s positive trend intact. Chinese May YoY Retail Sales reported 8.6% over 8.1% estimates. In the same time, Industrial Production data came out 0.5% lower than the street expectation of 5.5%. Below estimates YTD Fixed Asset Investment added more oil into the upward moving USD/CNY pair. Further upliftments came up with the release of good US May Retail figures.