Thursday 15th May
Overall the USD remains pretty much Trendless for now although against the Yen it is currently near a 2 month high after a tame reading on April CPI out of the US yesterday boosted equities and risk appetite. Recent signs of stability in US shares, higher US bond yields and a growing perception that the worst of the credit crisis may well be over is supporting the dollar against the low yielding Yen. Overnight the USD has moved to a 4 month high against the Kiwi which slumped as data showed retail sales fell at their fastest pace in 11 years in the first quarter. But it was the April CPI number that took the markets attention yesterday as it rose a benign 0.2 per cent in April against expectations of 0.3 per cent. This week both retail sales and CPI numbers have come in on the better side of expectations and for now at least the USD is enjoying a boost from such data.