Aug 13 2008
US Retail Sales on Tap
The greenback completed yesterday’s trading session with mixed results versus the major currencies. The USD fell against the euro yesterday for the first time in five days, pushing the oft traded currency pair to 1.4911. The dollar experienced similar behavior against the JPY as the pair dropped from 110.27 to 109.12 by days end. The USD did see bullishness as well as it over 100 points against The GPB and closed at 1.8955.
Yesterday, government reports showed that the U.S. trade balance for June had narrowed its deficit to 56.8B, 3 billion dollars less than last month. The unexpected recovery could be linked to US goods and services exports increased faster than imports lately. Following the report the USD briefly rose versus the euro, after trading as low as 1.4900. However by the end of the day the U.S. dollar slipped against the euro, breaking a five-session rally as investors locked in profits ahead of key economic data later in the week. The dollar has rallied more than 4% against the euro this month with help from a sell-off in oil prices and growing fears that economies around the world may slowdown at a quicker pace than in the United States. Looking ahead to today, the most important financial indicator scheduled from the U.S economy is Retail Sales. Analysts forecast that U.S retail sales will stay unchanged after last month’s 0.1% rise. Core Retail sales is expected to see another month of appreciation as forecasts map a 0.5% rise for June. Traders are strongly advised to pay attention to today’s Retail Sales announcement, as a stronger than expected result may launch a bullish correction in the dollar.
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