This morning’s US retail sales data came out much worse than expected, and traders could see further weakness in the Dollar as a result. Despite attempting another push higher, the Dollar is stuck in limbo.
The core retail sales data came out at -2.7% versus the forecast of 0.2%. This number represents all sales except for the automobile sector. The retail sales data came out at -3.0% versus the forecast of -0.5%. This is quite a drop-off considering last month’s numbers were 8.3% and 7.6% respectively.
To open up the day, the Dollar attempted to clear last week’s lower high at 91.950. But once again, the price was not able to close bullish above this level. Price has printed another shooting star off this level on the hourly time frame. As a result, further losses can be expected for the Dollar.
The only thing that can save the Dollar is tomorrow’s FOMC rate statement and Powell’s speech. The last time Powell spoke, the DXY surged up +0.67% within an hour. Until then, intraday shorts for the Dollar would make the most sense.