U.S. Dollar Mixed After Retail Sales Data
15 April 2021 - 07:26PM
RTTF2
The U.S. dollar showed a mixed trend against its major rivals
during European deals on Thursday, after the release of positive
data on the nation's retail sales and weekly jobless claims
supporting a recovery in the economy.
Data from the Commerce Department showed that U.S. retail sales
spiked much more than expected in the month of March.
The Commerce Department said retail sales skyrocketed by 9.8
percent in March after tumbling by a revised 2.7 percent in
February.
Economists had expected retail sales to surge up by 5.9 percent
compared to the 3.0 percent slump originally reported for the
previous month.
Excluding sales by motor vehicle and parts dealers, retail sales
soared by 8.4 percent in March after plunging by a revised 2.5
percent in February. Ex-auto sales were expected to jump by 5.0
percent.
Data from the Labor Department showed that first-time claims for
U.S. unemployment benefits pulled back much more than anticipated
in the week ended April 10.
The Labor Department said initial jobless claims tumbled to
576,000, a decrease of 193,000 from the previous week's revised
level of 769,000.
Economists had expected jobless claims to decline to 700,000
from the 744,000 originally reported for the previous week.
With the much bigger than expected decrease, jobless claims fell
to their lowest level since hitting 256,000 in the week ended March
14, 2020.
Speaking to the Economic Club of Washington on Wednesday, Fed
Chair Jerome Powell reiterated that the interest rate will remain
low until the central bank attains its goals on employment and
inflation.
The Fed will taper asset purchases when there is substantial
further progress towards its goals from last December, he
added.
The dollar dropped in the Asian session, as treasury yields
pulled back after Powell asserted that the accommodative policy
won't change anytime soon.
The greenback retreated to 1.3807 against the pound, from a high
of 1.3762 seen at 6:55 am ET. The pound-greenback pair had ended
yesterday's trading session at 1.3774. The greenback is seen
finding support around the 1.40 mark.
The Credit Conditions Survey results from the Bank of England
showed that British lenders expect demand for secured lending as
well as the availability of secured credit to households to
increase in the next three months to end-May.
The availability of secured credit to households increased in
three months to end-February, while demand for secured lending for
both house purchase and remortgaging decreased in the first
quarter.
The greenback remained lower against the yen, at a fresh 3-week
low of 108.66. The pair had closed Wednesday's deals at 108.91. If
the greenback falls further, it is likely to test support around
the 106.00 region.
The greenback climbed to a 2-day high of 0.9246 against the
franc from Wednesday's New York session close of 0.9218. Next key
resistance for the greenback is likely seen around the 0.94
level.
The greenback appreciated to 1.1956 against the euro, after
falling to 1.1993, which was its lowest level since March 4. The
pair was worth 1.1978 when it closed deals on Wednesday. Should the
greenback strengthens further, it is likely to test resistance
around the 1.18 region. Final data from the statistical office
Destatis showed that German consumer prices increased at the
fastest rate in more than a year in March.
Consumer prices grew 1.7 percent year-on-year in March, in line
with preliminary estimate, following a 1.3 percent rise in
February. A similar higher rate was last reported in February
2020.
U.S. business inventories data for February and NAHB housing
market index for April are scheduled for release in the New York
session.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Feb 2024 to Mar 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Mar 2023 to Mar 2024