November 16, 2021

Will US Retail Sales Data Drive the USD to Rocket Again?

 The US dollar moved calmly across the market in the European session as investors awaited the release of US retail sales data tonight that will be the next mover of the currency’s king.

At the time of writing, the dollar index is trading higher at around 95.50 against most major currencies.

The movement of the giant currency was initially stagnant during the Asian session after a virtual meeting between US President Joe Biden and Chinese President Xi Jinping was said to have ended well.

This to some extent added to sentiment for major currencies, and provided support for the Chinese yuan to climb to a five -month high against the US dollar.

Nevertheless, the greenback dollar re -strengthened its position as the market entered the European session with positive expectations that the retail sales data to be released tonight will exhibit encouraging readings.

The euro continued to weaken to a 16 -month low, trading around 1.13560 against the USD as it was affected by the European Central Bank’s (ECB) statement remaining dovish in setting its monetary policy.

On the other hand, the Aussie and New Zealand dollars continued to depreciate lower against the greenback dollar, failing to maintain the gains made in the previous Asian session.