We have updated our privacy policy and terms & conditions. Find out more here.

Dollar broadly higher after U.S. retail data

ForexAug 13, 2013 02:57PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - The dollar was broadly higher against the other major currencies on Tuesday after data showed that U.S. retail sales rose for the fourth successive month in July.

During U.S. morning trade, the dollar extended gains against the yen, with USD/JPY advancing 1.32% to 98.17.

The Commerce Department said core retail sales, which exclude automobile sales, rose at the fastest pace in seven months, climbing 0.5% compared to forecasts for a 0.4% gain.

Overall retail sales rose by a seasonally adjusted 0.2% last month, slightly below expectations for a 0.3% increase. Retail sales figures for June were revised up to a 0.6% gain from a previously reported increase of 0.4% the report said.

The data reinforced the view that the economic recovery is strong enough for the Federal Reserve to begin phasing out its asset purchase program later this year.

The yen weakened across the board earlier Tuesday following reports that Japan’s Prime Minister Shinzo Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.

Elsewhere, the dollar hit one-week highs against the euro, with EUR/USD down 0.45% to 1.3240.

The euro briefly touched session highs earlier after a report showed that the closely watched ZEW index of German economic sentiment rose to a five-month high of 42.0 in August from July’s reading of 36.3. Economists had forecast a reading of 40.0.

The index of economic expectations for the euro zone was also higher, increasing to 44.0, the highest since April 2010, up from 32.8 in July.

The dollar was almost unchanged against sterling, with GBP/USD dipping 0.01% to 1.5462.

Official data on Tuesday showed that the rate of consumer inflation in the U.K. eased in line with forecasts in July. The Office for National Statistics said consumer price inflation ticked down to 2.8% on a year-over-year basis from 2.9% in June.

Investors were looking ahead to U.K. employment data on Wednesday after the Bank of England announced plans last week to keep interest rates on hold at record lows as long as the U.K. unemployment rate remains above 7%.

The dollar extended gains against the Swiss franc, with USD/CHF jumping 0.92% to 0.9344.

The greenback was broadly higher against its Australian, New Zealand and Canadian counterparts, with AUD/USD down 0.72% to 0.9082, NZD/USD dropping 0.90% to trade at 0.7937 and USD/CAD climbing 0.41% to 1.0346.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.59% to 81.90.

Dollar broadly higher after U.S. retail data

Related Articles

Forex - Euro down more than 1% on Greece woes
Forex - Euro down more than 1% on Greece woes
By Investing.com - Mar 31, 2015

Investing.com - The euro was down more than 1% against the dollar and the yen on Tuesday as a standoff between Greece and its creditors over a debt restructuring deal dragged ...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.