Dollar Gains on Retail Sales Expectations
The U.S. dollar rose against euro, pound and yen today, rebounding from the yesterday drop, as the market strategists expect a good report on the U.S. retail sales to support Feds hawkish interest rate outlook.
The retail sales report that will be released today at 12:30 GMT will probably show that the consumer economy got boosted by the governments $50 billion tax-rebate plan checks. Better retail sales reading would allow the Federal Reserve to increase the interest rate soon.
Its a third gaining day for the U.S. dollar this week with the only daily decline recorded on Wednesday when the stock markets were slumping worldwide.
The important thing to remember here is that if the retail sales report disappoint traders, dollar may lose greatly today as the market currently is standing overly optimistic on this release.
EUR/USD fell down from 1.5555 to 1.5340 as of 7:37 GMT today with a daily low at 1.5392. GBP/USD dropped from 1.9639 to 1.9536 with a daily low at 1.9509. USD/JPY rose from 106.85 to 107.50 with a daily maximum at 107.62 so far.
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