Weak U.S Retail Sales Report Didn’t Deter the U.S Dollar

The greenback performed excellently thus far this week despite the weak retail sales report published on Tuesday.

Monday, May 14: Dollar Rebounds, Euro Dips on Coeure’s Remarks

USD

The Greenback started the day quite poorly but later bounced back thanks to easing trade war fears and traders expecting positive reports for the U.S. retail sales release this week.

USD/JPY started the day at a low of 109.41 but ended at a high of 109.80, USD/CHF recovered to finish the day at 1.0015, EUR/USD meanwhile slid to 1.1923, and GBP/USD dipped to 1.3555.

EUR

The European currency lost some ground after ECB member Coeure stated that the bank isn’t thinking of any rate hikes yet.

EUR/JPY dipped from a day high of 131.35 to a low of 130.77, EUR/GBP also slipped to the .8800 handle, and EUR/CAD fell to finish the day trading at 1.5273.

Tuesday, May 15: Rising Bond Yields Lift USD Despite Weak Retail Sales

USD

The USS started the day strongly and was able to hold on to finish the day as the best-performing currency, boosted further by rising U.S. bond yields and more talks on rate hikes.

USD/JPY finished the day at a high of 110.46, USD/CHF started the day at a high of 1.0038 but later retreated quickly, and EUR/USD fell to a low of 1.1816.

NZD

The Kiwi was the worst performing currency of the day after failing to find support from the rebound in the prices of GDT.

NZD/USD dipped to the 0.6870 support level by the end of the day, NZD/JPY fell to a low of 75.70, and GBP/NZD meanwhile went up to 1.6860.

Wednesday, May 16: Risk Rebounds on Trade Updates, EUR Still Shaky

Commodity currencies

The comdolls ended the day very positively largely due to improving risk sentiment as traders have been focused on positive trade updates, increase in oil prices and a stronger than expected Canadian manufacturing sales among others.

AUD/USD went up to 0.7519, GBP/AUD meanwhile slipped down to a low of 1.7938, and AUD/CAD was able to hold on to the 0.9600 mark.

NZD/USD recovered from 0.6860 support to end the day at 0.6890, NZD/JPY went up to 76.13, and GBP/NZD slipped to 1.9639.

USD/CAD dipped from 1.2861 to end the day at 1.2786, CAD/JPY also went up to 86.30, GBP/CAD meanwhile dipped to 1.7320, and CAD/CHF recovered to trade at 0.7828.

EUR

The shared currency ended the day as the worst-performing early on in the session but managed to recover before the end of the day. The main catalyst for this dip was traders getting worried after a leaked draft of the 5 Star/League agreement previously released caused the Italian stock market to record massive losses and this affected the overall demand of the Euro. ECB President Mario Draghi in his speech confirmed that the region is becoming politically fragmented.

EUR/USD dipped to a low of .1762 before pulling up, later on, EUR/JPY also started the day slipping to a low of 1.2966 before recovering to 130.34, EUR/AUD dipped to the 1.5700 levels, and EUR/NZD ended the day at a low of 1.7058.

Thursday, May 17: GBP Surrenders Gains, USD Regains Its Mojo

GBP

The sterling started the day strongly at the Asian trading session but ended up as the worst performing currency at the London trading session. The main catalyst for the reversal in fortune was an article by Reuters which contradicted the earlier Telegraph report and PM May’s comment that the U.K. “will be leaving the customs union.” This invalidated the earlier report by the Telegraph and affirmed the Reuters report.

GBP/USD dipped to 1.3498, GBP/AUD also went down to trade at 1.7933, and GBP/NZD slipped to 1.9587

USD

After an average performance at the Asian session earlier today, the greenback regained its mojo and ended up as the best-performing currency at the London session. Analysts attributed this gain to an increase in U.S bond yields even though it is worthy to note that the Greenback still recorded some gains when U.S. bond yields took a step back late into the session.

USD/JPY was up to trade at 110.64, USD/CHF rose to 1.0020, and USD/CAD went up to 1.2780

Forex Signals

Its been a slow week of trading, but we look forward to more opportunities in the week ahead.