- US retail sales fall 1.2% in May, ex-autos down 1.1%
- Fed’s Plosser upbeat on growth, sell assets sooner rather than later
- ECB’s Bini-Smaghi: German will grow faster than Club Med; Warns China on FX rate
- Rehn denies Spain to tap EU rescue plan
- University of Michigan consumer sentiment index rises to 75.5 in June from 73.6 in May
- US business inventories rise 0.4%, sales rise 0.6%
- Greek PM: Clearly have decided against default or to leave the euro
- Deutsche CEO Ackermann reverses stance on Greece; says see Greece repaying debts
- S&P 500 rises 0.4%, Gold closes at $1226, oil falls $1.30 to $74.20
EUR/USD opened the US session at the top of the week’s range but profit-taking ahead of US retail sales pushed rates down to around 1.2125 before the data. Weak sales data raised jotters of a double-dip and risk aversion undermined prices for a time. EUR/USD edged to modest fresh lows around 1.2080 before stabilizing.
Profit-taking from short-term specs ahead of the weekend as well as fixing related sales of EUR/USD helped send EUR/USD down to test the 50% fibo of the week’s range at 1.1948 before a bounce Fibo of the week’s e. We end the day at 1.2100,
Cable fell to test its 61.8% retracement of the week’s range at 1.4505 before stabilizing. Weak industrial production in the UK helped stall the GBP bounce and send longs to the sidelines.
AUD sold off on risk reduction after the US data but regained its form and ends the week at its highs of 0.8505. Hopes that the AUD will be included in a revamped SDP from the International Monetary Fund helped boost it.
USD/JPY was a non-issue, trading between 91.20 and 80, influenced by intraday risk appetites.
Have a great weekend all. Happy World Cup!
