1 month ago
Forex

U.S. Dollar Falls After Retail Sales Slump

Investing.com - The greenback fell on Thursday, then recovered slightly, as a steep decline in retail sales increased the

Investing.com - The greenback fell on Thursday, then recovered slightly, as a steep decline in retail sales increased the chances of the Federal Reserve holding rates steady for longer.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell to 96.792 after the data before recovering to 97.03 as of 10:41 AM ET (15:41 GMT).

U.S. retail sales tumbled 1.2%, compared with forecasts for a gain of 0.1%, the Commerce Department reported. The numbers support the Fed continuing to pause rate hikes this year, as the government shutdown, slowing global economy and trade concerns could cause more consternation among American consumers.

The disappointing retail numbers offset U.S.-China trade optimism. U.S. President Donald Trump said the negotiations were going very well, while Bloomberg reported that he was considering pushing back the March 1 deadline for higher tariffs by 60 days.

The dollar was down against the safe-haven yen, with USD/JPY slipping 0.2% to 110.72. The yen is typically sought by investors as a safe haven during times of economic or market stress.

Elsewhere, the pound was lower, with GBP/USD falling 0.48% to 1.2780, as Brexit woes continued. U.K. Labour leader Jeremy Corbyn is expected to meet with the EU's Michel Barnier and European parliament Brexit coordinator Guy Verhofstadt next week to try and make a bid to break the impasse over the Irish backstop agreement.

The euro was higher, with EUR/USD recovering 0.11% to 1.1277.

In Australia, the AUD/USD inched up 0.01% to 0.7089 while NZD/USD jumped 0.5% to 0.6825. The loonie was lower, with USD/CAD up 0.65% to 1.3339.