In very light trading given the Easter Monday holiday in nearly all of Europe, the US Dollar continues to be softer than normal versus its major trading rivals, with the Dollar Index falling to a 5-month trough after disappointing economic data dented investor sentiment. That news also helped to push global indices lower, with the Nikkei losing nearly 0.6% at one point and S&P500 mini futures falling some 0.15%. According to the latest data released last Friday, US retail sales fell in March to -0.2%, against expectations of a 0.1% reading, and previous figures were also revised downward into negative territory. Consumer inflation also fell unexpectedly.
As reported at 10:38 am (BST) in London, the EUR/USD was trading at $1.0626, up 0.14%, and edging toward the session peak at $1.0641. The GBP/USD was also higher at $1.2543, up 0.19%, just off the session high at $1.2544. The US Dollar Index was trading at 100.34 .DXY, down 0.17%.
China Data Helps Aussie and Kiwi Dollars
The latest data out of China failed to get any significant reaction as investors had been optimistic given the recent positive data. The Chinese economy grew 6.9% in Q1, year-over-year, besting forecasts of 6.8%. Industrial production rose to 7.6% while retail sales in February grew to 10.9% from 9.5%. Positive economic news from China tends to help antipodean currencies, especially given the strong trading relationship. The AUD/USD was up 0.04% to trade at $0.7588 while the NZD/USD was at $0.7020, up 0.1544%.