USD flows: Not much reaction to softer retail sales

US May retail sales have come in weaker than expected, falling 0.9% m/m, with the core down 0.3%. However, due to the sharp 1.5% rise seen in March, the data isn’t weak enough to suggest any real slowing of the trend at this stage, especially since the retail control group number, which is the relevant measure for GDP, still rose 0.4%, which was marginally above expectations. So while the outcome was weaker than consensus, the market impact has been minimal, with some volatility but no clear USD direction, and the broadly neutral tone may now persist into the central bank meetings later this week.