Declining U.S. Retail Sales Boosted U.S. Currency

The U.S. dollar rose against other major currencies today after the report showed the decrease of the retail sales, causing the doubt whether the global economic recovery would keep its pace.

The U.S. retail sales provided an unpleasant surprise by declining 1.2% in May, while they were expected to increase by 0.2%. While these news might hurt the U.S. currency, the greenback managed to appreciate. The experts say that the currency actually benefited from the ensuing risk aversion sentiment.

The markets are on the look-out for the bad news, always ready to shy away from the risk and stick to the safety. And the U.S. brought the bad news today, yet the U.S. currency profited from them as it’s still considered the safe currency.

EUR/USD traded today at about 1.2070 as of 17:07 GMT after opening at 1.2122. USD/JPY rose to 91.62 from the opening price of 91.34.

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