Forexlive Americas FX news wrap: Yen slides as the rally in risk assets continues

• US February retail sales +0.2% vs +0.6% expected
• US March Empire manufacturing index -20.0 versus -1.50 estimate
• US March NAHB housing market index 39 vs 42 expected
• Atlanta Fed GDPNow Q1 estimate -2.1% vs -1.6% prior
• Canada February housing starts 229K vs 250K expected
• Comments from Kevin Hassett highlight optimism around Canada and Mexico
• Trump is considering recognizing Crimea as Russian territory - report
• Trump: XI will be coming "in the not too distant future"
• White House reiterates that reciprocal tariffs will go into effect on April 2
• Trump. "Houthi mobsters"/Iran...your attacks will be met with great force
• EU tees up possible responses to US tariffs
• US business inventories for January 0.3% vs 0.3% estimate

Markets:

• WTI crude up 31-cents to $67.49
• US 10-year yields flat at 4.30%
• Gold up $15 to $2999
• S&P 500 up 0.65%
• NZD leads, JPY lags

The US retail sales report wasn't great but the control group beat estimates and that led to some sighs of relief on the strength of the US consumer. It wasn't a good report but it was good enough to allay fears of a sharp slowdown in the economy and that helped to lift the mood.

I would also point to the comments from Hassett, who seemed to indicate that good news was coming for Mexico and Canada on tariffs and that reciprocal measures on trade might not be so bad.

Bids in risk assets were steady as AUD and NZD led the way with the help of China consumer stimulus announced earlier. The pair made steady progress throughout the day that continued in North America with AUD adding another 40 pips during US hours.

USD/CAD also turned lower in a positive sign on tariffs as it declined 90 pips on the day despite some worrisome data on housing. For now though, it's all about tariffs and there is some hope of a better outcome, something I highlighted in comments to Reuters.

The yen was the laggard in a classic risk-on move. Equity futures were solidly negative coming into US trading but improved on retail sales and there were steady bids afterwards.

The pound nearly tagged 1.30 today for the first time since November as it poked its head above last week's high. The US dollar was broadly weaker ex-yen as the shift to cheaper international assets continues.