- The dollar gains momentum after the data of retail sales in the United States.
- The data is below expectations, but triggers the correction of the dollar.
- USD/JPY bounces almost a hundred points.
The pair USD/JPY rose sharply after the release of US economic data and reached 133.18, marking a new daily high. The Dollar appreciated across the board despite a larger-than-expected drop in March Retail Sales.
US data disappoints expectations
Retail Sales fell 1% in March, versus consensus for a 0.4% drop, after a 0.2% decline (revised from -0.4%) in February. Sales excluding autos fell 0.8% in March, above the forecast drop of 0.3%.
The Import Price Index fell at an annualized rate of 4.6%, more than the 3.7% market consensus, and the Export Price Index fell 4.8%, more than the 4.2% drop expected.
The latest economic figures suggest some weakness in demand and also a decrease in inflationary pressures. However, the immediate reaction to US Retail Sales triggered an upward correction in the dollar across the board. US yields rose strongly, probably on the expectation of even weaker than expected numbers. Wall Street futures remain in positive territory. The Japanese yen hit new lows against its main rivals.
USD/JPY initially fell to 132.17 and then bounced almost a hundred points in a few minutes. It is currently trading at 133.10, at daily highs. The next resistance level is at 133.40, Thursday’s high. On the other hand, 132.80 is now immediate support.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
