The U.S. dollar (USD) rose for the second straight day due to firmer-than-expected U.S. retail sales.
While total retails sales were unchanged, retail sales excluding autos rose 0.4% in June. Yep, American shoppers were back at it in June, spending more on everything but cars.
This spending spree was the biggest in the last three months, showing that people are still willing to open their wallets after a bit of a slowdown at the end of the second quarter.
The data suggests that the economy is still holding up as the Federal Reserve nears a start to rate cuts.
Currency Market Movers
Let’s review the price action in forex today.
Which currency pairs gained the most today?
GBP/NZD was the leader of the pack, gaining 0.50% or 107 pips.
As shown by our FX Market Movers page, EUR/NZD wasn’t far behind, gaining 0.46%.
Looking at the GBP/NZD Trend Following Rating, it’s showing a strong Bullish rating.
Its bullish price action can be clearly seen with the currency pair trading above its moving averages:
But the GBP/NZD Overbought/Oversold Rating is showing “Overbought” so be careful if you’re looking to go long.
Which currency pairs lost the most today?
NZD/CHF was the biggest loser, falling 0.65% or 35 pips.
Currency Strength
What was the overall strength or weakness of individual major currencies today?
Based on the Currency Strength Meter on MarketMilk™, CHF was the strongest currency, while NZD was the weakest currency.
If we dive a little deeper and look at just how major currency pairs moved over the past 24 hours, we can see USD rallying driven by stronger-than-expected retail sales data (excluding autos).
Currency Short-Term Trends
When it comes to short-term trend strength, GBP, JPY, and EUR show the most bullish strength.
The New Zealand dollar (NZD) shows the most bearish strength.
Keep an eye on the Australian dollar (AUD), its bullish trend is weakening.
Currency Heat Map
If we take a look a look at our Currency Heat Map, we can see the continued weakness of JPY.
NZD is a currency to follow for continued weakness.
Currency Volatility
Which currency was the most volatile today?
Based on our Currency Volatility Meter, it’s the New Zealand (NZD).
Check out the USD volatility during the release of the US retail sales data.
JPY was the most volatile during the Asian and European sessions.
Which currency PAIR was the most volatile today?
Given that JPY was the most volatile currency, it has to be a NZD pair. Right?
Nope, it was actually AUD/USD. But it barely NZD/CHF for the title today.
AUD/USD moved 0.74% or 49 pips.
