Dollar accelerates as retail sales increase for second month
International Trading
THE TECHNIQUE OF GIVING A GOOD MASSAGE
14 years ago
Tuesday, September 14, 2010
, Posted by Usman Ali Minhas at 8:28 AM
Investors’ anticipation for retail sales data from the US boosted optimism among them, but failed to support the European currencies in trading. The euro traded relatively unchanged, while the pound declined against the world reserve currency due to inflation report overshadowing retail data.
Softer Germany ZEW confidence reports and worse than expected industrial data from the European Zone economies, the Euro settled to trade near its opening levels for today. UK’s data were discouraging as well due to rising inflationary threats in the country, which increased investor’s demand for safety earlier in the European session.
Retail sales data from the US showed that sales increased by 0.4 percent, beating market expectations of 0.3 percent. Investors looked upon the data to determine if global economies are witnessing slowdown in conditions.
After the release of US data, the yen traded at 15-year high against the dollar, as it eased concerns that economic growth is faltering.
The US dollar index, which tracks the performance of the dollar against six majors, traded higher at 81.87, compared with the opening levels of 81.84. The index reached the highest at 82.02 and the lowest at 81.66. Gold appreciated to trade at 1259.73 while oil traded at 78.03 a barrel.
The euro-dollar pair traded below its opening levels of $1.2882 after reaching a high of $1.2909 and a low of $1.2827. Currently, the pair is trading at $1.2851. A bullish intraday direction is projected for the pair, with targets at $1.2915 keeping in mind the importance of stability above $1.2715 in order to achieve those targets.
Moving to the Royal currency, the pair retreated on the daily scale to trade at 1.5413, compared with the opening levels of 1.5425. The pair reached the highest at 1.5441 and the lowest at 1.5345. Expectations for a bearish intraday direction is projected for the remainder of today, with targets at 1.5397, keeping in mind the importance stability below 1.5460 levels.
Finally talking about the dollar’s performance against the Yen, the USDJPY pair depreciated as it’s trading at 83.29, compared with the opening levels of 83.70, the pair managed to reach the highest levels so far at 83.74 and the lowest at 83.05.
The pair is projected to trade within the support at 83.00 and the resistance at 83.80 for the remainder of today’s trading session, keeping in mind if the pair achieves to build a strong base above 83.35, would take the pair to target 83.85 levels.
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