Bloomberg Dollar Index dropped to the weekly low, with EUR/USD, GBP/USD, CHF/USD and JPY/USD all going strong, CNY/USD has reached the highest level since June.

Highlights:
1. U.S. October retail sales released with lower than expected level
2. RCEP trade deal likely overcome downbeat U.S. sentiment
3. Failing Treasury yields have likely further boosted Yen

US October retail sales released last night at 0.3%, lower than the forecasted 0.5%. Retail sales reports are compiled from the data on 12,000 retailers nationwide and has been used as a key indicator on the health of the economy. The discrepancy may be explained by the ongoing political deadlock between Republicans and Democrats, as well as the rising strength of the second COVID wave that is currently sweeping over the U.S.
Earlier this week China has led the Regional Comprehensive Economic Partnership (RCEP) deal in the region, with 14 other countries participating in this massive trade agreement. The deal has helped form the largest global trading bloc, covering 2 billion people and 27 trillion in economic production.
However, the immediate impact from this deal is not as apparent as its long-term outlook, AUD/JPS and NZD/JPY both lost ground on Tuesday but Yen was boosted by the 5.6% drop in the U.S. 10-year yield. Investors seeking higher inflation-adjusted returns are likely turning to Japanese government bonds, a momentum that is likely a key driver in Yen’s recent strength.