Retail Sales Weigh on the US Dollar

US dollar is struggling today, thanks in large part to the poor retail sales data report for April. The report provides more evidence that the US economic recovery is losing steam, and that is leading to a greenback that is mostly lower in Forex trading.

Analysts expected retail sales to increase by 0.3 per cent in the month of April, but they remained flat. Consumers appear reluctant to spend, and with a large portion of the US economy based on consumption, this means that the recovery is losing some steam.
Indeed, the US dollar is moving lower against many of its counterparts today on the news that retail sales were disappointingly flat in April. The slowing in the economic recovery means that an interest rate hike from the Federal Reserve could be pushed further away, and that is slowing the recent dollar rally.
The forecast for economic growth for 2015 is being revised lower for the United States. This is a contrast to the expectations for the United Kingdom and the eurozone, which seem to be picking up.
At 10:34 GMT EUR/USD has surged higher to 1.1422 from the open at 1.1354. GBP/USD is also higher, moving up to 1.5784 from the open at 1.5746. USD/JPY is higher, gaining to 119.2140 from the open at 119.1550.

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