Positive US retail sales support the USD

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After the dollar rally seen late last week, it seemed that markets were ready for some consolidation and correction.

However, the better than expected retail sales figure in the US provides some support to the US dollar and curbs some of the correction. When the wave of dollar buying renews, the retail sales numbers will provide a justification for the new rise. At the moment the dollar remains more or less balanced with other currencies.

The headline figure surprising by edging up 0.1%, instead of dropping by 0.3%. This isn’t a very big surprise, and it came on top of a marginal downwards revision of last month’s result: a drop of 0.5% instead of 0.4% originally reported.

Core sales dropped by 0.1%, exactly as expected. All in all, this is result is better than expected.

These important numbers join the better-than-expected jobless claims number on Thursday and the good Non-Farm Payrolls report for April released early in the month.

EUR/USD was especially hit by the fresh talk about negative rates earlier in the day.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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