US retail sales are missing a lot, but the dollar is unlocked and holds the handle 97

• Forex has given the dollar a new lease of life, despite declining US yields and unusually weak retail sales for the month of December, somewhat thwarted by the climate of conflict and headlines surrounding Sino-US trade relations.

US data released on Thursday was very disappointing for dollar bulls in the hope of a better result in situ, thanks to solid US CPI results obtained yesterday. Data posted a sharp decline of 1.2% in December, the largest monthly decline in nine years. The consensus expected a gain of 0.1%. The markets were convinced that the data was only a tiny part, perhaps because of the stock market defeat and the partial closure of the government. They focus instead on strengthening the job market and wage inflation. There was also a feeling of optimism while another stop of the US government seemed to have been avoided. The banknote was capped at 97.29 but was held on the neck by the skin of his teeth. However, the 10-year US Treasury yield fell from 2.71% to 2.64% due to retail sales data, while the 2-year yield went from 2.54% to 2.48%. .

However, according to a WSJ report and a more recent Bloomberg article, the US-China trade headlines were worrisome and "have made little progress so far" during the Beijing talks, that the corporate government and structural reforms are "an extremely delicate issue that the history of Bloomberg has been commented on by Chinese leaders," she added, adding that "the hurdles prevent negotiators from respecting Trump's criteria to push back the March 1 deadline by more than doubling the $ 200 billion worth of Chinese goods. "

Monetary action:

Westpac badysts explained the key action in the G10-FX space as follows:

"After announcing yesterday that the United States was ready to extend the 60-day deadline for a trade deal with China, another competitor said the two countries had made little progress." AUD / USD fell to 0.7072 but has recovered Kent, from RBA, said the recent depreciation of $ A was helpful for the economy.

EUR / USD rose 0.3% on the day to 1.1300, bouncing on US retail data. The underperformance was GBP, which fell from 1.2880 to 1.2775 following Parliament's rejection of the Prime Minister's plan to renegotiate Brexit. USD / JPY fell from 111.10 to 110.50 due to the fall in US yields. The NZD outperformer remained high between 0.6820 and 0.6855. As a result, the AUD / NZD fell further to 1.0369, its lowest level since June 2017. "

Key notes of the American session:

Key upcoming events:

China's January CPI and PP are planned for Asia.