USD flows: USD softer after weaker retail sales
Weaker US retail sales in January may be partly weather affected, while the USD impact is also offset by other data
Weaker than expected US January retail sales at -0.8% headline and -0.6% core have sent the USD lower across the board. However, the weakness may be partly weather related, and there are also stronger Philadelphia Fed and NY Empire manufacturing surveys and lower initial claims numbers to offset the impact. While the net effect is mildly negative for US yields and the USD, the impact is small and we wouldn’t expect these numbers to have any influence on Fed thinking.
EUR/USD should consequently stay in the 1.07-1.08 range for now, while USD/JPY may be able to slide a little lower from 150, but with equities responding 
positively to the data, the JPY is unlikely to perform particularly strongly on the crosses.