US Retail Sales Data May Turn Dollar Bearish

The dollar traded steadily against the euro yesterday, largely due to the lack of significant news releases during the European trading session. The EUR/USD advanced some 30 pips over the course of the day, reaching as high as 1.2528 during the morning session. Against the JPY, the dollar received a slight boost during overnight trading following comments out of the International Monetary Fund that the yen is overvalued. The USD/JPY was up just over 40 pips for the day, reaching as high as 79.68 before staging mild downward correction to stabilize at 79.55. Turning to today, dollar traders will want to pay attention to the US Retail Sales, Core Retail Sales and PPI figures, all scheduled to be released at 12:30 GMT. Analysts are forecasting that the Retail Sales and PPI figures will come in well below last month's figures. If true, the USD could see downward movement against the yen and euro during afternoon trading. That being said, given the poor state of the euro-zone at this time, any losses the dollar takes against the euro may turn out to be temporary.

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