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U.S. Dollar Index Rose to 94.40 Firm Before Retail Sales; Euro Fell to 1.1330

Posted by Chris Advincula on May 13, 2016 7:16:15 AM

(May 13 Friday) The U.S. dollar index rose to a two-week high versus the basket of six currencies which rose to the intraday high of 94.44 from 94.12 (+32 pips) on speculation that the Fed may still raise rates in the near term 2016 based on the comments yesterday from the Boston Federal Reserve President Eric Rosengren, who said that the Fed should raise interest rates if data confirms a stronger jobs market and inflation outlook in the second quarter, adding the the markets have been too pessimistic on the economy.

The euro came under pressure against the firm US dollar in Europe and fell from 1.1375 to 1.1328 (-47 pips) and with the EMU 1st QTR GDP coming in lower than expected at +0.5% versus the median forecast of +0.6%, while it rose +1.5% Y/Y versus the median forecast of +1.6%. Germany's preliminary 1st QTR GDP rose +0.7% slightly above the forecast of +0.6%, while it rose +1.6% Y/Y versus the forecast of +1.5%.

The next market focus is the U.S. April Retail Sales which is expected to rise to +0.9% from -0.3% in March.

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Topics: EURO, US Dollar Index, Forex Fundamentals, USD, US economic statistics

 

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