EUR/USD (a 4-hour chart)
The U.S. dollar fell to a two-month low level against the Japanese yen as evidence that Japanese investors continued to sell foreign bonds and stocks. That news was more important to the market than the more positive-than-expected data on U.S. retail sales and the number of applications for unemployment benefits.
USD/JPY was trading at 94.77 against 95.61 in late North American session on Wednesday, falling below 95 for the first time since early April. The dollar briefly committed below 94 yen on Thursday. Stronger U.S. economic data contributed to a possible slowdown in the monthly asset purchases by the Federal Reserve, which have a negative impact on the dollar. The policy of the central bank determined the fluctuations of the market in recent years, as investors tried to predict the likely timing change in Fed policy. But the reaction of the dollar to a possible decline in asset purchases was not as positive as investors hoped.
U.S. retail sales in May grew at the fastest pace in three months, jumping 0.6% adjusted for seasonal variations. The reason for this growth was the sale of cars that offset the decline in sales of electronics and clothing as well as a decrease in income of restaurants, among others.