- US Dollar hits a 7-day high despite retail sales disappointment
- EUR/USD falls 40 pips on a report of Bundesbank support for stimulus
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 12:00 05/12 to 12:00 05/13 EST
The Dow Jones FXCM US Dollar Index has risen to a new weekly high, despite a temporary setback on the release of disappointing retail sales for April.
The dollar posted modest gains through the Tokyo session overnight, partially on the back of Australian Dollar losses on the release of worse than expected Chinese data. The annual rise in Chinese industrial production and retail sales both disappointed expectations, and AUD/USD lost about 15 pips following the release.
The greenback continued to take gains in the London session off of Euro losses on a disappointing German ZEW survey. Then, EUR/USD declined 40 pips, as the Wall Street Journal reported that an inside source at the Bundesbank said the German central bank would support negative rates or bank loan purchases if the inflation outlook was lowered in the ECB’s June estimate.
However, those dollar gains were temporary rolled back after the release of US retail sales for April. Advanced retail sales only rose 0.1% in April, and USD/JPY declined 20 pips following the release. But the decline was soon followed by a gradual rally (not pictured above) to a new 7-day high at 10,472.
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-- Written by Baruch Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .