The US Dollar is softer against the Pound but edged higher against the Euro after data showed that US retail sales came in above forecasts for December.
The ‘Greenback’ firmed against a number of peers after the Commerce Department released its latest retail sales report. Sales climbed by 0.2% in December, up from the downwardly revised figure of November. Economists had been expecting a rise of 0.1%. Sales excluding cars jumped to 0.7%, its highest increase in almost a year.
The weak rise recorded over the holiday season was being attributed to the recent cold weather that has plagued much of the United States. Receipts at car dealerships fell by 1.8%, the biggest decline recorded since October 2012.
The data helped bolster expectations that the economic recovery in the U.S. will continue to deepen in the coming year.
Earlier in the session, Sterling found support from data which showed that inflation in the UK fell to match the Bank of England’s 2% inflation target. The Euro too found support after a report showed that industrial production in the Eurozone came in far stronger than economist forecasts. The European Central Bank also revised its growth forecast for 2014, slightly higher in December, saying it now expects growth of 1.1%
Against the Japanese Yen the ‘Greenback’ hit a session high and reached its highest level in five years after data showed that Japanese current account deficit widened to its biggest level since 1985. The Dollar also climbed against the Australian Dollar as investors raised their bets that the Federal Reserve will continue to taper its stimulus programme.
Against its New Zealand relation the US Dollar was weaker after the ‘Kiwi’ received a boost from a report which showed that business confidence in the country climbed to a 20-year high in the fourth quarter of 2013.
Wednesday sees the release of the latest Producer Price inflation reports which could create some volatility for the currency.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6087
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7313
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0911
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6426
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3670
(Correct as of 14:35 pm GMT)
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