Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - Dollar Roughly Unchanged as Analysts Play Down Retail Sales Slump

Published 02/14/2019, 02:31 PM
Updated 02/14/2019, 02:46 PM
© Reuters.

© Reuters.

Investing.com - The U.S. dollar was roughly unchanged against its rivals Thursday as analysts downplayed data showing U.S. retail sales suffered their biggest drop since 2009.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.12% to 96.82.

The Commerce Department said on Thursday that retail sales fell 1.2% last month. That confounded economists’ forecasts for a 0.1% rise. The retail sales control group, which has a larger impact on U.S. GDP, fell 1.7%, missing expectations for not change.

CIBC said one weak reading shouldn't prove worrisome as a strong labor market will lend support to consumer spending in the coming months.

"Still, today's data reinforces the Fed's cautious stance for the time being and will weigh on the USD and see yields fall," the bank added.

The lower retail sales print, however, saw regional Federal Reserve banks slash estimates for fourth-quarter GDP.

The U.S. economy's estimated growth rate in the fourth quarter was cut to 1.5% from 2.7% by the Atlanta Federal Reserve after declines in retail sales and inventories.

EUR/USD rose 0.32% to $1.1301 even as data pointed to a slowdown in the German economy.

GBP/USD fell 0.35% to $1.2799 after U.K. Prime Minister Theresa May suffered another defeat in parliament that leaves the option of a no-deal Brexit on the table.

May tabled a motion requesting U.K. lawmakers reiterate their support for the approach agreed on Jan. 29, when the they backed an amendment allowing the prime minister to return to Brussels to negotiate the Irish backstop.

The motion was non-binding, with many looking toward the next vote to determine path for Brexit. May will return to parliament to face another vote at the end of the month, by which time the prime minister may have been able, though unlikely, to score tweaks to Irish backstop issue that U.K. lawmakers have suggested is needed in order to back the withdrawal agreement before March 29, when the UK is to leave the EU.

USD/CAD gained 0.23% to C$1.3281 as Canada manufacturing data fell well short of estimates.

USD/JPY fell 0.33% to Y110.62.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.