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The U.S. dollar falls following weak industrial production.

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USD – United States Dollar

The greenback slips towards an intraday session low as U.S. treasury yields fall, following weaker-than-expected U.S. retail sales data. The retail sales control group had 0 percent increases (flat) in January versus expectations for a 0.3 percent gain; the prior month came in at 0.5 percent. However, the adjusted retail sales less autos and gas stations came in at 0.4 percent versus the 0.3 percent expected.

Another critical piece of information that was released a few minutes ago was the Industrial Production data. January industrial production fell 0.3 month to month after falling 0.4 percent in December. Industrial output has declined in four of the past five months.

Key Movers

It has been interesting to watch the Euro weaken versus different currencies over the last few hours and go beyond critical technical levels. However, there hasn’t been an obvious catalyst for the weakness in the Euro, other than perhaps the potential impacts of the Coronavirus on Chinese demand for European exports, which might affect the U.S. as well. At this moment, the EUR/USD pair trades at 1.0855. It has bounced over the last few minutes, up more than 0.1 percent against the U.S. dollar. The British Pound versus U.S. dollar is trading at 1.3015, down 0.2 percent.

The Japanese Yen increased against the U.S. dollar and Aussie dollar after the Center for Disease Control confirmed a 15th case of the Coronavirus in the U.S. A Fox news White House reporter tweeted that the U.S. administration believes China is “severely” under-reporting the number of deaths from the virus. At the time of this writing, the USD/JPY and AUD/JPY pairs are trading down 0.03 and 0.01 percent, respectively (stronger yen).

Expected Ranges

USD/CAD: 1.3234 – 1.3285 ▼

EUR/USD: 1.0827 – 1.0880 ▲

GBP/USD: 1.3000 – 1.3050 ▼

AUD/USD: 0.6687 – 0.6720 ▼

NZD/USD: 0.6416 – 0.6440 ▼


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