Greenback steeply lower as U.S. data disappoints

Greenback steeply lower as U.S. data disappoints

13 May 2015, 14:55
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On Wednesday the greenback edged lower vs counterparts, after data indicated that U.S. retail sales rose less than expected in April, adding to the recent series of soft data and to concerns over the strength of the economy.

Official data showed that U.S. retail sales including automobiles were flat last month, confounding expectations for a 0.2% rise. March's figure was revised to a 1.1% increase from a previously estimated 0.9% gain.

Core retail sales, which exclude automobiles, rose by 0.1% in April, well below expectations for a 0.5% gain. The change in core retail sales for March was revised to a 0.7% increase from a previously estimated 0.4% uptick.

EUR/USD was up 0.63% to 1.1283.

Official figures signaled euro area GDP rose 0.4% in the first three months of the year, up from 0.3% in the final quarter of 2014 but slightly below forecasts for growth of 0.5%.

The euro's economy rose 1.0% on a year-over-year basis, after a 0.9% expansion in the three months to December. Economists had forecast growth of 1.1%.

Germany’s economy grew 0.3% in the first quarter, slowing from 0.7% in the previous quarter, while the French economy grew 0,6% in the same period - the fastest rate in two years.

Data indicated that the euro zone's industrial production slipped 0.3% in March, confounding expectations for a 0.2% rise. February's figure was revised to a 1.0% gain from a previously estimated increase of 1.1%.

GBP/USD rose 0.21% to 1.5703, close to five-month highs of 1.5743 hit earlier in the session.

Sterling was slightly weaker after the U.K.'s central banks cut its forecast for growth this year to 2.4%, down from 2.9% three months ago. It also revised down forecasts for 2016 and 2017 to 2.6% and 2.4% respectively.

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