Mixed US Economic Data Have No Impact on the Dollar

Market Reviews

The British pound is the strongest one, followed by Canadian dollar. Meanwhile, Japanese yen is the weakest one, followed by US dollar. Global shares were mostly higher today. FTSE gained 0.22%, DAX was up 0.34% and CAC grew by 0.34%. Earlier in Asia, Nikkei increased by 1.2%, Hong Kong HSI was up 1.01%, Singapore Strait Times grew by 0.95%. But China Shanghai SSE fell by 0.18%.

The American currency showed no reaction to mixed economic data, but the dollar tries to recover. US headline retail sales rose 0.1% mom in August, below expectation of 0.4% mom. Ex-auto sales rose 0.3% mom, below expectation of 0.5% mom. Import price index dropped by 0.6% mom versus expectation of -0.2% mom. Industrial production grew by 0.4% mom in August, above expectation of 0.3% mom. Capacity utilization rose to 78.1%.

The euro remains generally steady versus US dollar. Today’s data showed, that the Eurozone trade surplus fell to EUR 12.76 billion in July from EUR 16.47 billion in June. This was the lowest level since June 2014, when the surplus was EUR 12.22 billion.

Bank of England Governor Mark Carney stated, that the Bank of England and Britain's largest banks are well-prepared for a disorderly Brexit. "The Bank of England is well-prepared for whatever path the economy takes, including a wide range of potential Brexit outcomes," Carney said. "We have used our stress test to ensure that the largest UK banks can continue to meet the needs of UK households and businesses even through a disorderly Brexit, however unlikely that may be. Our job, after all, is not to hope for the best but to plan for the worst," he added.

Today’s data also showed, that New Zealand Business NZ manufacturing PMI rose to 52 in August up from 51.2. China retail sales increased by 9.0% yoy in August, beat expectation of 8.8%. China’s industrial production rose by 6.1% yoy, below expectation of 6.2% yoy. Fixed assets investment increased by 5.3% yoy, below expectation of 5.7% yoy.