Tuesday session brought finally some fresh wind to FX market as investors saw US retail sales data from March, as well as International Monetary Fund’s (IMF) Global Economic Outlook, both undermining strength of the US dollar, dragging him down against all of its major counterparts.
March US retail sales data proved to be a complete disappointment, with general retail sales reading reaching only 0.9%, while core gauge (ex auto) rose only 0.4%. Even the rest of readings came well below general expectations, pulling dollar down against most of its fx peers.
In addition, the IMF’s GDP outlook for respective countries added to dollar-bearish pressure as the economic forecast for the US has been cut to 3.1% in 2015 from previous expectations of 3.6%. Moreover, eurozone saw more optimistic opinion with its GDP outlook for 2015 lifted from previous 1.2% to actual 1.5%.
Nevertheless, we do not expect this move to change the long-term trend albeit correction pushed the currency pair to even $1.07 level.
From the technical point of view, we see bullish TP at $1.0774, later at $1.0864, or $1.1025. Our bearish TP remains on $1.0491, with previous one at $1.0548.
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