US dollar is heading higher on the latest retail sales data numbers. With data beating expectations, the greenback is gaining against its major counterparts.
In April, retail sales increased by 1.3 per cent. This represents the biggest jump in a year, and beat expectations of a 1.0 per cent gain. The news is helping the US stock futures pare some of their earlier losses, as well as boosting the performance of the US dollar on the Forex market.
Greenback is heading higher against its major counterparts as signs of consumer spending indicate that the economy might not be in trouble after all. There are still concerns among economists that Americans are shopping less and saving a little bit more. However, the rise in auto sales and online sales are helping the economy a little bit.
It’s unsure how much this report will bolster a case for a higher Fed rate, though. Unless there is more sustained growth, the rate is likely to remain at the current level.
At 13:30 GMT US dollar index is up to 94.485 from the open at 94.178. EUR/USD is down to 1.1324 from the open at 1.1377. GBP/USD is down to 1.4380 from the open at 1.4450. USD/JPY is higher, gaining to 109.39 from the open at 109.02.
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