Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Dollar mixed after earlier bounce on strong US retail sales

Published Oct 16, 2023 09:13PM ET Updated Oct 17, 2023 03:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File photo
 
USD/JPY
-0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NZD/USD
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AUD/USD
+0.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GBP/USD
+0.09%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EUR/USD
-0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Karen Brettell

NEW YORK (Reuters) - The dollar rose against the Japanese yen on Tuesday, but ended lower against the euro after data showed that U.S. retail sales rose more than expected in September, with investors also focused on a busy week of speeches by Federal Reserve officials.

Retail sales rose 0.7% last month as households boosted purchases of motor vehicles and spent more at restaurants and bars.

“The whole idea of the U.S. economy slowing down in Q4 was that the consumer would pull back, and they ended Q3 on a very strong note,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Despite the positive sales, Jeffrey Roach, chief economist for LPL Financial (NASDAQ:LPLA), noted that there are some headwinds affecting U.S. consumers.

"Investors need to look underneath the sales figures to get a better look on the health of the consumer. Rising use of credit and early signs of delinquencies could dampen some of the enthusiasm," he said in a note.

Other data on Tuesday showed that production at U.S. factories increased more than expected in September despite strikes in the automobile industry curbing motor vehicle output.

The dollar index was last flat on the day at 106.23. It is holding below the 107.34 level reached on Oct. 3, the highest since November 2022.

The euro gained 0.08% to $1.0569. It is up from $1.0448 on Oct. 3, the lowest since December 2022.

Investors are focused on speeches this week by Fed officials, including Fed Chair Jerome Powell on Thursday, for further clues about interest rate policy.

Richmond Fed chief Thomas Barkin on Tuesday said that higher long-term borrowing costs are putting downward pressure on demand, but it's unclear how that will affect the central bank's rates decision in two weeks.

Fed officials will enter a blackout period on Oct. 21 before the Fed’s Oct. 31–Nov. 1 meeting.

Traders are evaluating whether the U.S. central bank may hike rates again as it battles to bring inflation closer to its 2% annual target.

Fed funds futures traders are pricing in a 43% chance of an additional interest rate hike this year, but only 12% odds of a rate increase next month, according to the CME Group's (NASDAQ:CME) FedWatch Tool.

The Japanese yen weakened back nearer to 150, last trading at 149.77, keeping investors alert to the possibility of an intervention by Japanese authorities.

It briefly surged earlier on Tuesday after a media report that the Bank of Japan was considering raising its core CPI forecast for the 2023 and 2024 fiscal years but maintaining the inflation outlook for 2025.

LOONIE, POUND DIP AS DATA DAMPENS HIKE EXPECTATIONS

The Canadian dollar weakened after Canada's annual inflation rate unexpectedly slowed to 3.8% in September and underlying core measures also eased, prompting markets and analysts to trim bets for another interest rate hike next week.

The U.S. dollar was last up 0.26% at 1.3647 Canadian dollars.

The pound dipped after growth in British workers' regular pay slowed from a previous record high and job vacancies also dropped, although the publication of some labor market data, including the unemployment rate, was delayed until next week.

Sterling was last at $1.2174, down 0.34% on the day, after jumping 0.6% on Monday.

The New Zealand dollar fell 0.62% to $0.5892 after data on Tuesday showed consumer inflation hit a two-year low, reducing expectations the central bank will hike the cash rate further in November.

========================================================

Currency bid prices at 3:00PM (1900 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 106.2300 106.2600 -0.01% 2.648% +106.5200 +106.0100

Euro/Dollar $1.0569 $1.0561 +0.08% -1.37% +$1.0595 +$1.0533

Dollar/Yen 149.7700 149.5150 +0.17% +14.24% +149.8450 +148.7500

Euro/Yen 158.28 157.87 +0.26% +12.82% +158.6100 +157.2500

Dollar/Swiss 0.9005 0.9003 +0.03% -2.61% +0.9032 +0.8992

Sterling/Dollar $1.2174 $1.2217 -0.34% +0.67% +$1.2217 +$1.2134

Dollar/Canadian 1.3647 1.3612 +0.26% +0.72% +1.3703 +1.3606

Aussie/Dollar $0.6358 $0.6343 +0.25% -6.72% +$0.6380 +$0.6335

Euro/Swiss 0.9516 0.9504 +0.13% -3.83% +0.9534 +0.9499

Euro/Sterling 0.8680 0.8644 +0.42% -1.85% +0.8690 +0.8642

NZ $0.5892 $0.5929 -0.62% -7.21% +$0.5927 +$0.5872

Dollar/Dollar

Dollar/Norway 10.9630 10.9320 +0.26% +11.68% +11.0100 +10.9330

Euro/Norway 11.5890 11.5277 +0.53% +10.39% +11.6149 +11.5250

Dollar/Sweden 10.9258 10.9181 +0.18% +4.98% +10.9670 +10.8890

Euro/Sweden 11.5432 11.5228 +0.18% +3.58% +11.5580 +11.5170

Dollar mixed after earlier bounce on strong US retail sales
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Otis Grant
Otis Grant Oct 17, 2023 5:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Higher for longer is nothing but an assumption when no one knows how fast inflation will fall
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email