Forexlive Americas FX news wrap: Retail sales roar and meme stocks sizzle

Markets:

• Gold down $16 to $18,376
• WTI crude oil down 46-cents to $78.60
• S&P 500 up 0.3% to 4147, Nasdaq up 0.9%
• US 10-year yields up 4 bps to 3.80%
• USD leads, GBP lags

There were some whispers about a hot retail sales report and the numbers certainly delivered but the market reaction in the FX market wasn’t as strong as you might think. The dollar was higher at first but not dramatically and at day’s end we’re largely back to pre-data levels.

The market reaction shows that many were leaning towards a hot report on account of better weather and one-off effects like a boost in social security payments. The dollar had rallied strongly in Asia and Europe ahead of the numbers and still finished the day strong.

Treasury yields rose 4 bps led by the long end but Fed funds futures didn’t move off a 5.24% peak.