June 16, 2020 / 1:54 PM / a month ago

FOREX-Dollar gains after upbeat U.S. retail sales data

    * U.S. retail sales surge in May
    * Focus on Fed Chairman Powell's testimony
    * Graphic: World FX rates in 2020 tmsnrt.rs/2egbfVh

 (Recasts, adds new analyst comment, U.S. data, FX table, previous LONDON)
    By Gertrude Chavez-Dreyfuss
    NEW YORK, June 16 (Reuters) - The dollar gained on Tuesday after a record increase in U.S. retail
sales in May after two straight months of declines, reinforcing a growing belief that the worst may be
over for the world's largest economy.
    The U.S. currency turned positive against the yen after the data, while the euro hit session lows
versus the greenback.
    Tuesday's data showed U.S. retail sales jumped 17.7% last month, the biggest rise since the government
started tracking the series in 1992. Data for April was revised to show a record 14.7% drop in sales
instead of the previously reported 16.2%. Economists polled by Reuters had forecast retail sales would
rise 8% in May.
    The data followed a report early this month showing that the U.S. economy created 2.5 million jobs in
May.
    "There are signs from the data here of better traction for the U.S. economy," said Shaun Osborne,
chief FX strategist at Scotiabank in Toronto. "Perhaps we can move way from the binary risk-off and
risk-on move of the market and just focus on fundamentals."
    In mid-morning trading, the dollar index was up 0.3% at 96.822.
    The euro dropped 0.4% against the dollar to $1.1282. 
    The greenback, meanwhile, rose 0.1% against the yen at 107.385 yen.
    Fed Chairman Jerome Powell is due to testify before the Senate Banking Committee on Tuesday. He will
deliver the same testimony on Wednesday before the House of Representatives Financial Services Committee.
    His testimony comes a day after the Fed said it would start buying corporate debt on Tuesday as part
of an already announced stimulus scheme, and launched its Main Street Lending Program for businesses.

    Investors will be listening for hints the Fed is willing to do more. 
    
    ========================================================
    Currency bid prices at 9:42AM (1342 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar      EUR=        $1.1279        $1.1322     -0.38%         +0.61%      +1.1352     +1.1271
 Dollar/Yen       JPY=        107.3900       107.3100    +0.07%         -1.35%      +107.6300   +107.2400
 Euro/Yen         EURJPY=     121.14         121.52      -0.31%         -0.66%      +122.1100   +121.0900
 Dollar/Swiss     CHF=        0.9487         0.9490      -0.03%         -1.98%      +0.9502     +0.9464
 Sterling/Dollar  GBP=        1.2626         1.2602      +0.19%         -4.77%      +1.2687     +1.2596
 Dollar/Canadian  CAD=        1.3537         1.3570      -0.24%         +4.24%      +1.3597     +1.3504
 Australian/Doll  AUD=        0.6928         0.6918      +0.14%         -1.32%      +0.6976     +0.6897
 ar                                                                                             
 Euro/Swiss       EURCHF=     1.0700         1.0745      -0.42%         -1.40%      +1.0770     +1.0686
 Euro/Sterling    EURGBP=     0.8931         0.8983      -0.58%         +5.65%      +0.8989     +0.8916
 NZ               NZD=        0.6465         0.6472      -0.11%         -4.02%      +0.6506     +0.6438
 Dollar/Dollar                                                                                  
 Dollar/Norway    NOK=        9.5117         9.5353      -0.25%         +8.35%      +9.5593     +9.4529
 Euro/Norway      EURNOK=     10.7303        10.8010     -0.65%         +9.07%      +10.8220    +10.6990
 Dollar/Sweden    SEK=        9.3132         9.2814      +0.00%         -0.37%      +9.3230     +9.2461
 Euro/Sweden      EURSEK=     10.5060        10.5059     +0.00%         +0.35%      +10.5351    +10.4888
 
    
 (Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Olga Cotaga in London; Editing by Will
Dunham)
  
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