Will the dollar remain firm ahead of U.S. retail sales data?
14.05.2026
- Preliminary GDP figures for the UK for January–March
- U.S. April Retail Sales
In the previous session, the U.S. dollar held firm as the April U.S. Producer Price Index (PPI) came in at 1.4% month-on-month and 6.0% year-on-year, exceeding market expectations, while expectations for a U.S. interest rate cut receded. The dollar/yen pair traded within a range of 157.54 to 157.93 before closing around 157.86, continuing to trade in the upper 157-yen range.Currently, the 158.00 level is likely to be viewed as an upper resistance, while the focus will be on whether the 157.50 to 157.00 range will act as support on the downside. We will be watching today’s U.S. retail sales data to determine whether the dollar’s resilience will continue.
European currencies were weighed down by political uncertainty in the UK and a strong U.S. dollar, causing the pound to face resistance against the dollar. The GBP/USD pair traded within a range of 1.3480 to 1.3550 before closing around 1.3520.Sellers are likely to be on the lookout for pullback opportunities near 1.3550, and the immediate focus will be on whether the pair can hold support in the 1.3500 to 1.3480 range. Today’s schedule includes the UK’s preliminary Q1 GDP figures, monthly March GDP, industrial production, and trade balance data; we will be watching the pound’s reaction to these economic indicators.
Today’s key economic indicators include the UK’s preliminary Q1 GDP at 15:00, March monthly GDP, March industrial production, March manufacturing output, and March trade balance, as well as U.S. April retail sales and U.S. April retail sales (excluding automobiles) at 21:30,US Initial Jobless Claims (previous week), US April Import Price Index, and Canadian March Wholesale Sales; and at 23:00, US March Business Inventories. During European trading hours, UK GDP-related indicators are likely to be key drivers, while during New York trading hours, US retail sales and US employment-related indicators are likely to be key drivers; we should carefully monitor the reaction of the pound and the US dollar.
Author: Keisuke Sakurai
