US wholesale sales rose 1.0% in April, with inventories up 0.6%. The former is a little below forecast, while the latter was stronger than expected. March sales were revised to a 0.6% gain compared to the 0.7% previously. March inventories were bumped up to 0.2% from 0.1%. April posted broadbased gains with only the auto inventory component posting the only decline for the major categories. The inventory-sales ratio slipped to 1.35 from 1.36, though that’s considerably above the 1.19 level from mid-2014, with such a steep spike typically only seen in recessions. The data will help refine GDP forecasts.
The dollar has traded mixed in the wake of the wholesale trade data out of the US EURUSD logged a six-day low of 1.1306, though the USDJPY only briefly rose before subsequently whipsawing and settling to near net unchanged levels. The interpolation of this is fresh lows in EUR-JPY, which is foraying into further into 39-month low territory. The Euro’s bad day continues.
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