U.S. Dollar Falls As Weak Retail Sales Back Rate Cut Hopes
15 February 2024 - 10:09PM
RTTF2
The U.S. dollar declined against its major counterparts in the
New York session on Thursday, following the release of
weaker-than-expected retail sales data for January that supported
hopes of a rate cut in June.
Data from the Commerce Department showed that retail sales slid
by 0.8 percent in January after climbing by a downwardly revised
0.4 percent in December.
Economists had expected retail sales to edge down by 0.1 percent
compared to the 0.6 percent increase originally reported for the
previous month.
Excluding sales by motor vehicle and parts dealers, retail sales
fell by 0.6 percent in January after rising by 0.4 percent in
December. Ex-auto sales were expected to rise by 0.2 percent.
Meanwhile, the Labor Department released a separate report
showing an unexpected decline in first-time claims for unemployment
benefits in the week ended February 10th.
The report said initial jobless claims fell to 212,000, a
decrease of 8,000 from the previous week's revised level of
220,000.
Economists had expected initial jobless claims to inch up to
220,000 from the 218,000 originally reported for the previous
week.
The greenback dropped to 2-day lows of 1.0782 against the euro,
0.8790 against the franc and 149.50 against the yen, off its early
highs of 1.0723, 0.8858 and 150.56, respectively. The greenback is
seen finding support around 1.10 against the euro, 0.83 against the
franc and 137.5 against the yen.
The greenback fell to 2-day lows of 1.3483 against the loonie,
0.6126 against the kiwi and 0.6527 against the aussie, from its
early highs of 1.3551, 0.6080 and 0.6477, respectively. The
greenback is poised to challenge support around 1.30 against the
loonie, 0.64 against the kiwi and 0.69 against the aussie.
The greenback declined to 1.2592 against the pound, down from a
previous high of 1.2540. If the greenback falls further, it is
likely to test support around the 1.31 region.
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