June 14, 2019 / 1:19 PM / 2 months ago

FOREX-Dollar gains on solid retail sales, before Fed meeting

 (New throughout, updates trading and comments to U.S. market
open, new byline, changes dateline, previous LONDON)
    By Karen Brettell
    NEW YORK, June 14 (Reuters) - The dollar index climbed to
its highest level in a week on Friday after encouraging retail
sales data for May eased fears that the U.S. economy is slowing
sharply, ahead of the Federal Reserve’s meeting next week.
    The Commerce Department said on Friday retail sales rose
0.5% last month, just slightly below economists’ expectations of
a 0.6% gain. Data for April was revised up to show retail sales
gaining 0.3%, instead of dropping 0.2% as previously reported.
    The dollar has recovered in the last week from a weak start
to June, as investors consider whether rate cut expectations
have gotten too far-fetched relative to the data.
    With international economic growth slowing, investors are
nervous that U.S. President Donald Trump will impose tariffs on
Japan and Europe, which could result in more dovish central
banks globally and give the dollar a relative advantage.
    The U.S. economy is also seen as better placed to handle
trade tensions than other countries.
    The dollar “has benefited to date from negative
globalization news as the domestic side of the U.S. economy has
looked sufficiently robust to deal with trade-related
headwinds,” Morgan Stanley analysts said in a report on Friday.
    “Other countries look less resilient in the face of trade
tensions due to higher exposure to global import demand,
dependence on manufacturing exports, and underdeveloped domestic
demand,” they said.
    Chinese data on Friday flashed more warning signs in May,
with industrial output growth unexpectedly slowing to a more
than 17-year low and investment cooling, underlining a need for
more stimulus.
    The Fed is not widely expected to lower interest rates when
it meets on June 18-19, though investors will watch for new
signals that a cut may come in July.
    Interest rate futures traders are pricing in a 23% chance of
a cut in June, and an 87% likelihood of at least one cut in
July, according to the CME Group's FedWatch Tool.
   The other major catalyst for the dollar in the near term is
whether the United States and China will renew trade
negotiations at the G20 summit on June 28-29.
    Trump said on Friday it didn’t matter if Chinese President
Xi Jinping attends the summit, adding that China would
eventually make a trade deal with the U.S.
    
    ========================================================
    Currency bid prices at 9:04AM (1304 GMT)
 Description                         RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                                                 Previous                   Change                 
                                                                 Session                                           
 Euro/Dollar                         EUR=        $1.1234        $1.1275     -0.36%         -2.05%      +1.1289     +1.1232
 Dollar/Yen                          JPY=        108.4500       108.3700    +0.07%         -1.64%      +108.4700   +108.1700
 Euro/Yen                            EURJPY=     121.85         122.20      -0.29%         -3.46%      +122.2700   +121.7900
 Dollar/Swiss                        CHF=        0.9972         0.9936      +0.36%         +1.61%      +0.9979     +0.9926
 Sterling/Dollar                     GBP=        1.2620         1.2672      -0.41%         -1.07%      +1.2682     +1.2617
 Dollar/Canadian                     CAD=        1.3348         1.3324      +0.18%         -2.12%      +1.3354     +1.3323
 Australian/Dollar                   AUD=        0.6885         0.6913      -0.41%         -2.33%      +0.6918     +0.6883
 Euro/Swiss                          EURCHF=     1.1206         1.1205      +0.01%         -0.43%      +1.1227     +1.1196
 Euro/Sterling                       EURGBP=     0.8902         0.8896      +0.07%         -0.91%      +0.8917     +0.8891
 NZ Dollar/Dollar                    NZD=        0.6512         0.6567      -0.84%         -3.05%      +0.6573     +0.6510
 Dollar/Norway                       NOK=        8.6964         8.6777      +0.22%         +0.67%      +8.7003     +8.6631
 Euro/Norway                         EURNOK=     9.7703         9.7899      -0.20%         -1.37%      +9.7968     +9.7706
 Dollar/Sweden                       SEK=        9.4643         9.4814      -0.57%         +5.58%      +9.4992     +9.4240
 Euro/Sweden                         EURSEK=     10.6340        10.6950     -0.57%         +3.60%      +10.7123    +10.6335
 
 (Editing by Bernadette Baum)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below