EUR/USD breaks above 1.1300 after US retail sales

FXStreet (Córdoba) - EUR/USD jumped to fresh daily highs as the dollar weakened following the release of disappointing US retail sales and import prices figures.

US retail sales were flat in April, while excluding autos sales rose by 0.1%. Consensus were for 0.2% and 0.5% increases for the headline and the core respectively. Separated data showed import prices dropped by 0.3% in the same month, missing expectations of a 0.3% rise.

The dollar took a hit following data and fell across the board. EUR/USD climbed nearly 100 pips, broke above the 1.13 mark and scored a fresh daily peak at 1.1315. At time of writing, the pair is trading at 1.1310, recording a 0.88% gain on the day.

Earlier, data from the Eurozone showed the economy grew at its fastest in almost 2 years, despite Germany’s slowdown. Gross domestic product in the Eurozone rose 0.4% in the first quarter and 1.0% YoY.

Upbeat eurozone data in contrast with signs of weakness in the US have fueled EUR/USD recovery from a 12-year low sub 1.05 struck in March.

US advance retail sales unchanged in April

The data released by the US commerce department on Wednesday showed the retail sales were little changed in April following an upwardly revised 1.1% growth seen in March. The consensus estimate had called for a reading of 0.2%.
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