Forexlive Americas FX news wrap: US dollar climbs after retail sales

<ul><li><a href="https://www.forexlive.com/news/usa-june-retail-sales-02-versus-05-expected-20230718/">US June retail sales 0.2% versus 0.5% expected</a></li><li><a href="https://www.forexlive.com/news/canada-june-cpi-28-yy-versus-30-expected-20230718/">Canada June CPI 2.8% y/y versus 3.0% expected</a></li><li><a href="https://www.forexlive.com/news/us-july-nahb-housing-market-index-56-vs-56-expected-20230718/">US July NAHB housing market index 56 vs 56 expected</a></li><li><a href="https://www.forexlive.com/centralbank/bojs-ueda-still-some-distance-to-sustainably-achieve-2-inflation-target-20230718/">BOJ's Ueda: Still some distance to sustainably achieve 2% inflation target</a></li><li><a href="https://www.forexlive.com/news/canada-june-housing-starts-2814k-vs-2200k-expected-20230718/">Canada June housing starts 281.4K vs 220.0K expected</a></li><li><a href="https://www.forexlive.com/centralbank/atlanta-for-gdpnow-q2-tracker-rises-to-24-from-23-20230718/">Atlanta Fed GDPNow Q2 tracker rises to 2.4% from 2.3%</a></li><li><a href="https://www.forexlive.com/news/microsoft-trading-higher-after-announcing-ai-chatbot-pricingshares-trade-to-new-at-high-20230718/">Microsoft trading higher after announcing AI Chatbot pricing.Shares trade to new AT high</a></li><li><a href="https://www.forexlive.com/news/us-business-inventories-for-may-02-versus-02-expected-20230718/">US business inventories for May +0.2% versus 0.2% expected</a></li><li><a href="https://www.forexlive.com/news/us-may-industrial-production-05-versus-00-expected-20230718/">US May industrial production -0.5% versus 0.0% expected</a></li></ul><p>Markets:</p><ul><li>Gold up $23 to $1977</li><li>WTI crude oil up $1.59 to $75.74</li><li>US 10-year yields flat at 3.79%</li><li>S&amp;P 500 up 0.7%</li><li>CHF leads, NZD lags</li></ul><p>Retail sales was the marquee event of the day but the data was something as a curve ball. The dollar initially dipped on the headline because it was soft but the 'control group' was strong, including a positive revision and price action quickly reversed. The dollar strengthened from there and held the gains on most fronts throughout the day.</p><p>A strong bid in European fixed income weighed on the euro and pound. That threatens to end an 8-day rally in the euro but it will be close with EUR/USD down just 4 pips at the time of writing. Cable felt more selling pressure in a slide to 1.3029 but bids arrived well and of the figure to cushion the dip.</p><p>USD/JPY touched 137.71 on retail sales selling and stayed soft as equities opened without an life but, once again, the BTD crowd arrived and took tech stocks up 1% to help the pair to 138.87.</p><p>The commodity currencies were a mixed bag. The Canadian dollar fell early but quickly turned around and was near the top of the FX leaderboard as oil prices rallied. USD/CAD rose above yesterday's high of 1.3233 and ran stops before falling to 1.3171. Canadian CPI was on the soft side but it didn't have a lasting effect.</p><p>NZD/USD was particularly soft ahead of today's pivotal CPI report. The consensus is for a +1.0% q/q reading and that will be one to watch.</p>

This article was written by Adam Button at www.forexlive.com.