Dollar up on strong retail sales

Currencies Direct May 14th 2013 - < 1 minute read

The US dollar continued its strong start to the week on Monday
(May 13th) as it held firm near five-week highs against a
basket of currencies following the release of robust retail sales
data.

USD/JPY was close to four-and-a-half-year highs at 101.79, while
the
dollars to pounds
exchange rate also rose, with GBP/USD down to
1.5336.

The dollar index hit a five-week high of 83.438 on Monday as the
greenback was sent broadly higher after the Commerce Department
said US retail sales rose 0.1 per cent in April, beating
expectations of a 0.3 per cent decline.

Coming off the back of solid jobs data, the news helped increase
optimism that the US Federal Reserve could pull back on its
quantitative easing programme soon.

Meanwhile the euro was sent towards five-week lows against the
greenback on continued speculation of negative interest rates in
the single currency zone.

European Central Bank policymaker Ignazio Visco was the latest
to indicate that the central bank may opt for negative deposit
rates, after governor Mario Draghi suggested as much earlier this
month.

EUR/USD was trading down at 1.2983 on Monday, close to the
five-week trough of 1.2935 hit at the end of last week.

Written by
Currencies Direct

Select a topic: