Dollar Gains on Europe’s Debt Concerns & US Retail Sales

The US dollar jumped today to the highest level in almost seven weeks against the euro as the concerns about the sovereign-debt continues to plague Europe and after the favorable economic data and the rising yield on the US Treasuries increased the appeal of the US currency.
The discussion between Ireland and the European Union about the bailout continues. The markets clearly showed the necessity of the bailout by the rapid decline of the euro. The problem for the euro is that Ireland isn’t only country with the debt issues and after the bailout of Ireland the concerns may simply shift their focus to another indebted country.
The US retail sales rose 1.2 percent in October, following the 0.7 percent in September. The analysts expected that in October the sales would advance also by 0.7 percent. The economists expect that tomorrow’s report will show the industrial production in the US expanded by 0.4 percent. Some analyst predict that the good economic conditions in the US wouldn’t last long as the quantitative easing not just wouldn’t provided any help to the economy, but can become a total disaster.
EUR/USD traded near 1.3586 as of 00:47 GMT today after it dropped on the yesterday’s session from 1.3682 to 1.3585. USD/JPY rose from 82.49 to 83.08 yesterday and advanced to 83.15 today.

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