Retail sales rose 0.4% in August compared to 0.2% expected. One of the sources of strength in the report was online sales (+1.8%) and that’s particularly impressive because the month earlier they rose on Prime Day despite expectations for a fall.
The dollar rose on the report but the gains have been modest and fleeting. USD/JPY is up to 108.13 from 107.95.
EUR/USD is down around 15 pips.
Treasury yields continue to retrace with 10-year notes up 6.6 bps to 1.84% today. That should be lifting the US dollar but the market is focused instead on the possibility of improving global growth on a trade deal.