US retail sales fall in April, but USD still firm
The market was only expecting a rise of 0.2% in US retail sales this afternoon, but on the month fell 0.2% with core retail sales up just 0.1% vs 0.7% expected. The retail control group which takes into account changes in spending habits came in flat, where a rise of 0.4% was anticipated. However, the prior month saw readings marked a little higher.
Alongside this, the NY Fed manufacturing index was above expectations at 17.8, with median forecasts at 8.2 - 10.1 previously. However, the focus should be on the US data, which as yet has failed to draw a response from the market. From early on, the USD has seen some selective buying across the board, and this has failed to derail moves which may be reacting to the risk mood in the broader markets and the USD as a safe haven as a result.
AUD and more recently GBP have come under fire, with AUD/USD eyeing, but holding onto 0.6900 for now. Cable was looking to base out ahead of the lows seen just under 1.2900 set last night, but we have since pushed lower to carve out fresh lows ahead of 1.2860. Key support here is coming up near the 1.2830 region.
EUR/USD has found some support at 1.1177, but pressure here is likely to return, with support seemingly coming through the crosses - notably EUR/GBP which is now pushing for 0.8700.
USD/JPY is grinding lower towards 109.00 again, with this level standing in the way of a move to 108.50 - the low seen at the end of Jan this year. USD/CHF is holding its ground for now, sticking to the 1.0050-90 range set from last night.