USD flows: USD gains after strong retail sales

US June retail sales come in much stronger than expected with May also revised higher and have given the USD a boost across the board, with USD/JPY the biggest mover, gaining around half a figure. However, here has been very little reaction in the rate market, and unless there is some belated rise in yields USD gains seem unlikely to go very far, with EUR/USD still likely to say close to 1.09. USD/JPY has more potential for volatility, but there are intervention risks near 160 and good technical support at 157.40, and this range will eb hard to break near term.