Currency Updates:
Another Round of USD selling yesterday and this morning after a very disappointing US Retail Sales report. Headline retail sales rose 0.0% in April versus expectation of 0.3%
Euro reached 1.1383 while GBPUSD continued its fierce upwards move to 1.5767 backed by very strong employment data coming out of the UK. Best performer of the day though was AUDUSD which was helped by the 1.7% rise in GOLD price ($1218 per ounce). The NZD also posted a sharp rebound earlier today AS Retail Sales in New Zealand soared to 2.7% from %1.6 expected.
Back in UK, the long anticipated Inflation Report revealed the BoE has been less optimistic over UK’s growth outlook as the Bank members revised lower GDP growth to +2.5% this year, from +2.9% previously.
Generally speaking, it looks like the FX markets and the USD is completely news driven. This means that economic announcements from the G7 countries are the ones that will have the highest impact on currency moves. Keep an eye, especially on employment and Growth Data.
Due to Bank holidays in Switzerland, France and Germany, it will likely be a quiet session until 12:30 GMT when jobless claims and PPI data will be released out of the US.
Trading Quote of the Day: Manage the risk and the profits will take care of themselves.
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