EU session review: Yen, Dollar falls after China reports

Data released:
08:30     UK     HICP (May)    0.2%    0.2%    1.0%
08:30     UK     HICP (May) Y/Y    4.5%    4.5%    4.5%
08:30     UK     HICP ex EFAT (May) Y/Y    3.3%    3.4%    3.7%
08:30     UK     Retail prices (May)    0.3%    0.4%    0.8%
08:30     UK     Retail prices (May) Y/Y    5.2%    5.3%    5.2%
08:30     UK     RPI-X (May) Y/Y    5.3%    5.3%    5.3%

The yen, the dollar and the Swiss franc fell against most of their major counterparts after reports showed China’s retail sales and industrial production increased, sapping demand for the safest currencies.
The U.S. currency declined against the euro for a second day before data that may show retail sales fell.
“Fears about a global slowdown seem to have been calmed by the improved industrial production data out of China,” said Bjarke Roed-Frederiksen, an analyst at Nordea Markets.
China’s statistics bureau said retail sales rose 16.9% last month, while industrial production increased more than economists projected. The 5.5%  acceleration in China’s consumer-price index was in line with economists’ forecasts.
The Bank of Japan today kept the benchmark overnight rate unchanged in a range between zero percent and 0.1%.

EUR/USD failed to hold above session high on $1.4470 and retreated to $1.4420. Later rate tries to recover and rose to $1.4453.

GBP/USD fell from session high on $1.6440 to lows around $1.6375. Currently rate holds around $1.6396.

USD/JPY weakened after challenging Y80.50. Rate fell to the lows near Y80.06. In general, rate trades tight.

The dollar also fell amid signs U.S. growth is slowing. Retail sales declined 0.5% in May, the first drop since June, according to a survey of economists. The producer-price index rose 0.1 percent in May after a 0.8 percent increase in April, another survey showed before today’s data.