14 Jan U.S. Dollar Growth Slows
The US dollar’s rise slowed down today after retail sales for December showed a decline that was faster than forecasted. This rose concerns about consumer spending in the final stretch of 2014. The negative retail sales data contradicts the expectations of firm GDP growth in the US, and it is likely economists will revise their outlook on the fourth quarter resulting in continued volatile exchange rates.
The unexpected retail data today slowed the rise in the US Dollar exchange rates pulling it away from recent 12 years highs against other major currencies. However, the ongoing drop in oil prices continued to support safe-haven demand for the USD and sell offs for the Canadian dollar.
Today, the U.S. Dollar index (measured against a trade-weighted basket of six major currencies) was down 0.45% at 92.03, close to the 12 year high of 92.76 which scaled last week.
For foreign exchange traders holding the US Dollar or looking to sell US Dollar there is a continuation of market uncertainty. Today’s retail data showed that although things are recovering and unemployment rate is at comfortable levels market conditions are still very volatile.
Here is a summary of the data released this morning that is responsible for the US Dollar exchange rate:
– USD Advance Retail Sales (DECEMBER): -0.9% versus -0.1% expected, from +0.4% (m/m).
– USD Retail Sales less Autos (DECEMBER): -1.0% versus 0.0% expected, from +0.1% (m/m).
– USD Retail Sales ex Auto and Gas (DECEMBER): -0.3% versus +0.5% expected, from +0.6% (m/m).
No Comments