Major Currencies Recover Slightly Against the Greenback In a Quiet Market - 14.5.2013

Markets were not much volatile during Monday and early on Tuesday with most of the major currency pairs fluctuating in a tight short-term range. Although US retail sales surprisingly increased more than estimates by 0.1% in April, up from a decline of 0.5% in March, the US dollar index after trading in 83.39/83.04 range yesterday, it dropped today to support at 82.92. US equity indices were mixed with S&P 500 remaining unchanged at 1633.77, NASDAQ composite also was unchanged at 3438.79 and Dow Jones Industrial Average dropped by 0.18%.

The US dollar against the Yen pulled back from more than 4½-year highs at 102.12 to support at 101.26 with NIKKEI 225 early today also retracing from more than 5-year highs, closing by 0.18% lower compared to Monday close. The 17-nation currency versus the greenback managed to rise above 1.30, as high as 1.3024, German Consumer Price Index for April released some hours ago was unchanged at minus 0.5% compared to previous month. Later on German and EZ ZEW Economic Sentiment as well as Industrial Production are expected, the latter would likely drive EURUSD trading in the intraday ahead of tomorrow’s GDP announces for Europe. Elsewhere, the AUDUSD remains below parity, it found support at 0.9940 and bounced up to strong resistance at 1.0002. Lastly, the USDCAD remains in 1.0139/1.0081 sideways zone following recent advancement from parity due to weaker than estimated jobs data the previous week.