Foreign exchange market. American session: the U.S. dollar declined against the most major currencies after the weaker-than-expected U.S. economic data

The U.S. dollar declined against the most major currencies after the weaker-than-expected U.S. economic data. The U.S. retail sales increased 0.3% in May, missing expectations for a 0.5% gain, after a 0.5% rise in April. April’s figure was revised up to a 0.5% gain from an increase of 0.1%.

The U.S. core retail sales excluding automobile sales were up 0.1% in May, missing expectations for a 0.4% increase, after a 0.4% rise in April. April’s figure was revised up to 0.4% from 0%.

The U.S. Labor Department released the number of initial jobless claims. The initial jobless claims in the week ending June 7 rose by 4,000 to 317,000. Analysts had forecasted a decline by 6,000 to 306,000.

The U.S. import price index increased 0.2% in May, meeting expectations, after a 0.4 fall in April.

Business inventories in the U.S. rose 0.6% in April, exceeding expectations for a 0.4% gain, after a 0.4% increase in March.

The euro traded higher against the U.S. dollar due to the weaker-than-expected U.S. economic data. Market participants remained unimpressed by the better-than-expected industrial production in the Eurozone. The industrial production in the Eurozone increased 0.8% in April, beating expectations for a 0.5% gain, after a 0.3% decline in March.

On a year-over-year basis, Eurozone’s industrial production rose 1.4% in April, exceeding expectations for a 0.9% increase, after a 0.1% fall in March.

The British pound traded higher against the U.S. dollar. The British currency was still supported by the yesterday’s strong U.K. labour market data. The U.K. unemployment rate fell to 6.6% in the three months to April. Jobless claims (claimant count) declined by 27,400 in May. Investors speculate the Bank of England will raise interest rate sooner than expected.

The Canadian dollar increased against the U.S. dollar due to the weaker-than-expected U.S. economic data. The new housing price index in Canada rose 0.2% in April, missing expectations for a 0.3% increase, after a 0.2% gain in March.

The New Zealand dollar climbed reached 1-month highs against the U.S dollar after the interest hike in New Zealand. The Reserve Bank of New Zealand (RBNZ) raised its interest rate to 3.25% from 3.00%. New Zealand’s central bank commented that borrowing costs could rise again this year.

The Australian dollar climbed against the U.S. dollar due to the weaker-than-expected U.S. In the overnight trading session, the labour market data was released in Australia. The number of employed people in Australia fell by 4,800 in May, missing expectations for a 10,300 rise, after 10,300 gain in April. April's figure was revised down to a 10,300 increase from a 14,200 increase.

Australia's unemployment rate remained unchanged at 5.8% in May. Analysts had expected an increase to 5.9%.

The Melbourne Institute released its inflation expectations for the next 12 months for Australia. The inflation expectations dropped to 4.0% in May from 4.4% in April.

The Japanese yen traded higher against the U.S. dollar due to the weaker-than-expected U.S. economic data. Japan’s core machinery orders dropped 9.1% in April, after a 19.1% gain in March. Analysts had forecasted a 10.8% decline.

On a yearly basis, the core machinery orders in Japan climbed 17.6% in April, after a 16.1% rise in March.