Forex News: U.S. Dollar Extends Decline After Weak Retail Sales

U.S. Dollar Extends Decline After Weak Retail Sales Data

(RTTNews) - The U.S. dollar extended decline against its major counterparts in the New York session on Friday, after the release of weaker-than-expected retail sales data for January.

Data from the Commerce Department showed that retail sales slid by 0.9 percent in January after climbing by an upwardly revised 0.7 percent in December.

Economists had expected retail sales to edge down by 0.1 percent compared to the 0.4 percent increase originally reported for the previous month.

Excluding a 2.8 percent plunge in sales by motor vehicle and parts dealers, retail sales declined by 0.4 percent in January after advancing by an upwardly revised 0.7 percent in December.

The pullback surprised economists, who had expected ex-auto sales to rise by 0.3 percent compared to the 0.4 percent growth originally reported for the previous month.

The data reduced hopes that the Fed will keep interest rates steady for longer.

The greenback fell to more than 2-week lows of 1.0513 against the euro and 0.8972 against the franc, off its early highs of 1.0446 and 0.9049, respectively.

The greenback declined to near a 2-month low of 1.2629 against the pound and a 3-day low of 152.06 against the yen, from its early highs of 1.2549 and 153.15 respectively.

The greenback weakened to more than a 2-month low of 1.4151 against the loonie and near 2-month lows of 0.6367 against the aussie and 0.5731 against the kiwi, from its early highs of 1.4201, 0.6309 and 0.5670, respectively.

The greenback is poised to challenge support around 1.09 against the euro, 0.88 against the franc, 1.29 against the pound, 150.00 against the yen, 1.38 against the loonie, 0.65 against the aussie and 0.59 against the kiwi.

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