A disappointment from headline retail sales numbers: retail sales rose only 0.2% and core sales by only 0.4%. However, the Empire State Manufacturing Index rose to 25.6 points, the highest since 2010. US retail sales were expected to rise by 0.6% in June after a dismal 0.3% in May (before revisions). Core sales were predicted to rise by 0.5% after +0.1% beforehand.
Before the publication, EUR/USD traded above 1.3610, GBP/USD around 1.7063 and USD/JPY around 101.60. Currencies are mixed initially and then the dollar is marginally stronger.
More: GBP/USD marks triple top – Yellen can determine a break or bounce
In addition, the US published import prices for June, which were expected to advance by 0.5% after 0.1% but rose by only 0.1%. However, the previous number was upgraded to +0.3%.
The Empire State Manufacturing Index carried expectations for a slide from 19.3 to 17.2 points but went all the way to 25.6 points.
Later in the day, Fed Chair Janet Yellen testifies in Washington and may finally acknowledge the improvement in the US economy.
Earlier, Germany’s ZEW index disappointed with a bigger than expected drop. EUR/USD dipped below 1.36 and provided yet another “buy the dip†opportunity. GBP/USD soared after stronger than expected inflation.
