Friday, 11 Dec 2009

Dollar Soars on Unexpected Retails Sales Figures

The dollar rose to a two-month high against the EUR on Friday after stronger-than-expected U.S. consumer data boosted expectations the Federal Reserve would raise interest rates sooner rather than later. The Dollar is currently trading higher against the EUR by nearly 100 pips at 1.4605. It is also trading higher against the JPY and GBP

U.S. retail sales increased 1.3% last month, the largest advance since August, after rising 1.1% in October. It was the second straight monthly gain and beat market expectations for a 0.7% gain.

A separate report showed consumer sentiment improved in early December on signs of stabilization in the labor market. The data were the latest in a series showing the economy may expand at a brisker pace in the fourth quarter than the 2.8% annual rate in the July-September period.

Looking ahead to late night trading, it's recommended that you continue buying-up the greenback, whilst the current trend it still hot.