Positive economic data is helping the US dollar today. Forex traders can compare the situation in the eurozone with that in the United States, and see a contrast. As a result, the greenback is getting a little help today.
After a few days of thin economic data, two key bits of data were released today, helping the greenback on the Forex market. The data points to an improving economy, and that is providing a boost for the US dollar.
First of all, US retail sales beat expectations in May, gaining 0.6 per cent over the previous month. This is the fastest gain in three months, and was mostly driven by car sales. The prospect of increased retail sales — indicating that Americans are ready to spend money — is helping matters for the economy.
Next, the latest initial unemployment claims data has been released. Jobless claims fell unexpectedly, fueling speculation that the labor market is getting back on track. If the economy continues to show signs of improvement, there is an increased chance that the Federal Reserve‘s easing efforts may be pared back. Employment is especially important, since Ben Bernanke indicated not too long ago that he would focus on those numbers.
At 13:17 GMT EUR/USD is down to 1.3291 from the open at 1.3337. GBP/USD is down to 1.5658 from the open at 1.5680. USD/JPY is at 94.6430, down from the open at 96.0110, but paring its earlier losses.
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