The dollar index (DXY00) this morning climbed to a 5-1/4 month high and is up +0.10%. The dollar gave up overnight losses and moved higher as the 10-year T-note yield jumped to a 5-month high after US March retail sales rose more than expected, a hawkish factor for Fed policy. The dollar today initially moved lower on reduced liquidity demand as stocks rallied after geopolitical concerns eased on hopes the conflict between Iran and Israel will be contained by diplomatic efforts. Also, dovish comments from New York Fed President Williams undercut the dollar when he said he expect the Fed to start cutting interest rates this year.
US Mar retail sales rose +0.7% m/m, stronger than expectations of +0.4% m/m. Also, Mar retail sales ex-autos rose +1.1% m/m, stronger than expectations of +0.5% m/m and the biggest increase in 14 months.
