October 15, 2018 / 1:51 PM / in a month

CORRECTED-FOREX-Dollar dips as U.S. retail sales misses expectations

 (Corrects yield in sixth graph)
    * Dollar weakens after weaker than expected retail sales
data
    * Treasury yields ease, reducing demand for greenback 
    * Safe havens yen, Swiss franc gain on tensions with Saudi
Arabia

    By Karen Brettell
    NEW YORK, Oct 15 (Reuters) - The U.S. dollar dipped on
Monday after retail sales data for September missed economists’
expectations, and as benchmark U.S. Treasury yields consolidated
after last week hitting their highest level in seven years.
    U.S. retail sales barely rose in September as a rebound in
motor vehicle purchases was offset by the biggest drop in
spending at restaurants and bars in nearly two years.
    Retail sales edged up only 0.1 percent in the month.
Economists polled by Reuters had forecast an increase of 0.6
percent.
    “We had softer than expected retail sales, that was another
leg of dollar selling,” said Win Thin, global head of currency
strategy at Brown Brothers Harriman in New York.
    It comes after data last week showed that U.S. consumer
prices rose less than expected in September, held back by a
slower increase in the cost of rent and falling energy prices,
as underlying inflation pressures appeared to cool.
    Higher 10-year Treasury yields, which on Tuesday shot to
3.26 percent, helped to boost the greenback last week. With
yields now having retraced to 3.15 percent, investors are
looking for fresh impetus for dollar buying.
    “Until we get another leg up in U.S. yields, the dollar’s
going to be sort of in limbo,” said Thin.
    Safe haven currencies the Japanese yen and the Swiss franc
gained on Monday as European stocks tumbled to 22-month lows,
with rising tensions between Western powers and Saudi Arabia
adding to a cocktail of concerns that battered global stocks
last week.
    Saudi Arabia has been under pressure since a prominent Saudi
journalist Jamal Khashoggi, a critic of Riyadh and a U.S.
resident, disappeared on Oct. 2 after visiting the Saudi
consulate in Istanbul.
    Chancellor Angela Merkel's Bavarian sister party also said
on Monday it would back political stability in Berlin after
suffering big losses in a regional election which their
far-right foes hailed as "an earthquake" that would rock the
coalition government.
    "I don't think (the German election result is) a huge
political risk, but it does tell you that political risks in
Europe are not going away," said Alvin Tan, a currencies analyst
at Societe Generale in London.
    
  ========================================================
    Currency bid prices at 9:40AM (1340 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1591        $1.1562     +0.25%         -3.38%      +1.1606     +1.1537
 Dollar/Yen       JPY=        111.7500       112.1900    -0.39%         -0.82%      +112.2500   +111.6300
 Euro/Yen         EURJPY=     129.56         129.65      -0.07%         -4.16%      +129.7900   +129.1400
 Dollar/Swiss     CHF=        0.9859         0.9913      -0.54%         +1.19%      +0.9921     +0.9849
 Sterling/Dollar  GBP=        1.3151         1.3154      -0.02%         -2.67%      +1.3181     +1.3081
 Dollar/Canadian  CAD=        1.3022         1.3021      +0.01%         +3.54%      +1.3033     +1.3005
 Australian/Doll  AUD=        0.7140         0.7117      +0.32%         -8.47%      +0.7148     +0.7099
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.1428         1.1462      -0.30%         -2.22%      +1.1469     +1.1416
 Euro/Sterling    EURGBP=     0.8812         0.8789      +0.26%         -0.81%      +0.8825     +0.8790
 NZ               NZD=        0.6542         0.6506      +0.55%         -7.68%      +0.6549     +0.6496
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        8.1517         8.1703      -0.23%         -0.67%      +8.1868     +8.1419
 Euro/Norway      EURNOK=     9.4500         9.4509      -0.01%         -4.05%      +9.4645     +9.4400
 Dollar/Sweden    SEK=        8.9536         8.9597      +0.20%         +9.17%      +8.9981     +8.9506
 Euro/Sweden      EURSEK=     10.3790        10.3578     +0.20%         +5.49%      +10.4020    +10.3568
  
    

 (Additional reporting by Tommy Wilkes in London
Editing by Susan Thomas)
  
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