The dollar index is holding onto a narrow 0.04% gain today at 105.359. The dollar had been higher overnight but cautious trading ahead of today’s economic data kept gains in check. The USD is evenly mixed vs. the G10 currencies with a 0.26% gain vs. NZD and 0.49% decline vs. CHF defining the outer boundaries.
Widening the view to the broader list of global currencies, the dollar is lower in emerging market pairs: -1.07% vs. MXN and -1.00% vs. BRL. The Mexican peso is higher today following report of higher aggregate demand and accelerating private spending.
U.S. Retail Sales data released today for May was reported below forecasts in all four categories, and the prior period results were all revised lower. Monthly Retail Sales were 0.1%, below the 0.3% forecast and April was revised to -0.2% from the original 0.0%. Retail Sales excluding auto purchases were -0.1% (0.2% estimate), and the prior was revised to -0.1% from the original 0.2%. The widest miss was in the category excluding autos and gas, 0.1% vs 0.4% estimate and the prior period revised to -0.3% from -0.1%.
U.S. Treasury prices rallied following the Retail Sales disappointment, pressuring yields which are lower in all tenors with the 3-year tenor taking the brunt of the selling, -0.051%.
Australia’s RBA left the official rate unchanged in its overnight policy decision announcement.
Several members of the U.S. Federal Reserve are scheduled to speak today including Barkin, Collins, Logan, Kugler, Musalem, Goolsbee and Collins. Four of the speeches will be delivered between 1-2pm ET, before market close.
Market liquidity will dry up earlier than on a normal Tuesday ahead of the U.S. holiday tomorrow.
