Upbeat Retail Data Helps US Dollar in Trading

Greenback is higher today, gaining ground as upbeat retail data from December helps promote the idea that the US economy is still headed for recovery.

Many had expected disappointing retail sales figures for December, since the holiday season was a bit lackluster. However, when the numbers came in, they were better than expected. This made up for last week’s disappointing payrolls data.
Now, the two-day slide in U.S. Treasury yields has been halted and the greenback is gaining ground against its major counterparts. This breath of fresh air has also allowed traders to stop and think about the new makeup of the voting members of the Federal Open Market Committee at the Fed. The two new voting members are more hawkish than their counterparts, and many now think that tapering will move forward in earnest.
With all of this news, and indications that monetary policy will be tightened as the US economy improves, it’s no surprise that the dollar is on the rise.
At 14:48 GMT the US dollar index is up to 81.0260 from the open at 80.6610. EUR/USD is lower, dropping to 1.3597 from the open at 1.3681. GBP/USD is also lower, down to 1.6351 from the open at 1.6444. USD/JPY is up to 104.4700 from the open at 104.2170.

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