Daily FX Update

The USD is retracing into the NA open, suffering losses against all the majors. The sudden shift to USD weakness occurred midway through the Asian session, as market participants looked at the collective developments of a less dovish than expected RBNZ, stronger than expected Chinese data with a hint that interest rate liberalization will accelerate, encouraging data from Australia followed by a reaffirmation of country level inflation data in Europe; juxtaposed against a Fed who is likely struggling with how a stronger USD will impact their interest rate outlook. Accordingly, today has proven a day of retracement for the USD. The release of retail sales and a slew of other U.S. data will be today’s focus

Read the full report: FX Daily