Stronger retail sales fails to reignite Dollar

US retail sales not only surprised to upside, June was revised higher.

• Headline sales rose by 0.6% in July from June. The data was much better, given June sales were revised upwards from -0.1% to +0.2%.
• Core sales that excludes auto grew by 0.4%, little shy of 0.5% anticipated, however that should be more than compensated by June revision.

Consumers seem to be warming up to better economic prospects and job gains.

Dollar is up against most currencies, however it seems to have failed to reignite itself against the majors, namely Euro, Pound, Franc and Yen.

All of them are down just marginally post release, which pose doubts over the bull's conviction.

FXCM US Dollar index, has broken below its recent range of 12060-11980 to the downside and traded as low as 11946.

Today it has moved within range, however somewhat failed reaction to better retail sales pose doubts over its strength.