US dollar remains weak
US dollar remains weak after poor retail sales data released on Wednesday increased concerns about the ability of the American economy to rebound after the weak first quarter. Traders are pushing back expectations of the first interest rate hike in the US. Still global investors are very active selling bonds, so German and US yields jumped to more than 5-month highs.
EUR/USD is testing last week’s high at 1.1390. GBP/USD is trading near the highest levels since mid December in the 1.5750 area even after the Bank of England cut its growth forecasts. USD/JPY failed to rise above 119.30 and is once again testing support at 119.00. NZD/USD surged to 0.7560 after New Zealand’s retail sale showed a record increase of 2.7%. AUD/USD hit a 4-month high at 0.81643 before retreating to 0.8127.