The dollar is gaining against the euro and the pound this morning after poor data out of the E.U. and strong data out of the U.S. Brexit concerns, of course, continue to hold the pound back.
U.S. retail sales surprise
There is stronger-than-expected data out of the U.S. this morning, with retail sales for November surpassing estimates and the October numbers revised up.
Retail sale month over month hit 0.2% growth expectations, but the retail sales control group showed growth of 0.9% instead of the 0.4% expected.
The October numbers on both measures were revised upward from previous readings, providing support that the economy isn’t slowing as much as some investors think.
The EUR/USD pair, which was already lower on the day due to poor data in the Eurozone, dropped from 1.128 to 1.127 after the retail numbers. The dollar also advance against the pound, pulling the pair lower to 1.254.
Eurozone data confirms “growth risks”
The purchasing manager’s index data out of the E.U. Friday morning was disappointing across the board, with the Markit composite PMI hitting 51.3 – the lowest level in more than four year.
The numbers out of Germany – the area’s largest economy – missed on the manufacturing, services and composite measurements. French PMIs fell more than expected as Yellow Vest protests take a toll.
The numbers confirm the growth risks mentioned by the ECB’s Mario Draghi Thursday.
The EUR/USD pair was as high as 1.1357 before the PMI data and then plummeted to 1.1292.
May unable to get concessions
U.K. Prime Minister Theresa May was unable to gain much traction in getting the E.U. to help her make the Brexit deal look more attractive to British MPs.
May attended the E.U. summit in Brussels, hoping to hammer out the details of the Irish backstop. In a short press conference, May said that the E.U. indicated it could move toward legally promising that the backstop won’t be forever. She also said that she needs more in order to please parliament.
The GBP/USD pair stair-stepped its way lower to 1.254 Friday morning, after starting the day around 1.264.