May 13, 2015: NZD and AUD are the strongest. GBP is the weakest.
The NZD and the AUD are attracting funds in trading today. The NZD omitted the word "unjustified" with regard to the value of the kiwi from the inflation stability report released at the beginning of the trading day (NOTE: NZD retail sales and PMI will be released after the NY close). The RBA last week eased but took out the easing bias. This has helped the high yielders attract more money flows (and/or lead to liquidation of short positions). It is what they don't say, that is having an impact.
The weakest currency is the GBP. The GBP benefited from better jobs/wage data but the inflation report lowered growth/inflation forecasts and the GBP moved back down.
The USD is once again one of the weaker currencies in trading today (declining against all with the exception of the GBP. Traders await the Retail Sales report at 8:30 AM ET (0.2% estimate, ex-auto and gas +0.6% estimate) and the import price index for the month of April (+0.3% estimate, -9.7% estimate YoY vs -10.5%). Business inventories (for March - an old 2Q number) are released at 10 AM with estimate for 0.2% gain. The EU is to issue national economic policy recommendations at 10:30 AM ET.
