USD buyers get an added boost as retail sales in the US beat forecasts

Published date: 18/04/2019
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US retail sales have come in higher than expected, rising 1.6% in March vs 0.9% expected, reversing the modest losses in Feb and some.  The retail control group which accounts for changes in spending habits also rises above forecasts, coming in at 1.0% vs 0.4% expected.  Ex-gas and auto retail sales were a little more modest, coming in at 0.9% vs 0.5% expected but the numbers are healthy enough to give the USD another shove higher.  

USD/JPY is still struggling ahead of 112.00-25, but EUR/USD and Cable have both been thrust lower to tackle support points which if materially triggered, could lead to some notable losses later on in the North American session.  

EUR/USD support at 1.1230 is the immediate target, and a push below here may well see us retesting the lows at 1.1175 again.  Cable support is here at 1.3000-1.2950, with the market taking little notice of the earlier retail sales beat in the UK, and indeed, some of the other positive data out this week.  A break under 1.2950 could see a move down to 1.2900 and then 1.2800 with Brexit uncertainty still hanging in the air. 

Elsewhere, NZD/USD is an easy target as we head back under 0.6700 again, though sellers are a little more hesitant in AUD/USD as we hold the mid 0.7100's for now.  

USD/CAD is also pushing higher despite health retail sales in Feb in Canada, which rose 0.8% on the month - double what was expected.  Core retail sales rose 0.6% vs 0.2% forecast.  USD/CAD is back testing 1.3400 as a result, but as we have seen previously, there is good interest to sell at these levels in the near term.


Comments

  • USD buyers get an added boost as retail sales in the US beat forecasts
    Charlotte says:
    18/04/2019

    Consolodation pendin after all these moves, i really would like a broker reccomendation plz

  • USD buyers get an added boost as retail sales in the US beat forecasts
    Jamie says:
    18/04/2019

    UCADDD, well i love how my analysis plays out and it is refelcting yours. a year long followers and technical floor member Cannot thank you enough!!

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