US dollar is getting a boost today, thanks to the latest retail sales data. While the data wasn’t super-impressive, it still showed solid gains, and that is supporting speculation that Fed tapering will end sooner rather than later.
July retail sales showed an increase of 0.2 per cent. This was a little below expectations of 0.3 per cent, but some of the disappointment was offset by the fact that the number, when auto sales were excluded, was better than expected.
Even though the numbers are particularly impressive, they nonetheless indicate that there is stable consumer demand, and has been for the last few months. As a result, the speculation concerning the likelihood of the Federal Reserve tapering its asset purchase program is back on. Some even think that the taper could begin as early as September.
With the idea that the United States could pull back on some of its quantitative easing efforts, the greenback is seeing some gains against its counterparts. Dollar is up against the euro, and, while down against the pound, is still holding its own to some degree.
At 17:07 GMT EUR/USD is down to 1.3257 from the open at 1.3300. GBP/USD is up to 1.5463 from the open at 1.5461. USD/JPY is up to 98.2200 from the open at 96.9035.
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