April US retail sales growth of 0.5% MoM and higher-than-expected jobless claims weigh on Fed rate cut expectations.
The Dollar extended gains against the Euro, pushing EUR/USD down 0.22% to 1.1679 as US retail sales rose 0.5% in April, matching estimates but below March’s print. Year-over-year sales surged 4.9%, exceeding forecasts of 3.3% growth.
Initial jobless claims climbed to 211K for the week ending May 9, above the 205K estimate. Gasoline prices rose 12.3% last month, boosting household spending, while the US Dollar Index (DXY) hit a ten-day high at 98.77.
Kansas City Fed President Jeffrey Schmid noted inflation remains the top risk, citing economic resilience and a strong job market. His remarks followed data reinforcing sticky inflation pressures.