The US Dollar strengthened against the Euro and the Pound but declined against the commodity based currencies including the Canadian and Australian Dollars after retail sales in the States beat forecasts.
According to the Commerce Department retail sales increased by 0.6% in May, the biggest rise in three months and follows Aprils increase of 0.1%. Economists had been expecting an advance of 0.4%.
The data shows that Americans stepped up their purchasing power at retail businesses, spending more on home improvements, cars and sporting goods defying expectations that consumers would refrain from spending as higher taxes were introduced. The gain shows that consumers remain resilient.
“The consumer seems to be faring very well,” said Brian Jones senior U.S. economist at Societe Generale, who correctly forecast the gain in sales. “The labor market is getting better. People realize that the employment situation has improved so they feel better and are probably willing to go out and spend money.”
The retail sales report is the government’s first look each month at consumer spending, which drives 70% of economic activity. Steady job growth and rising home prices have helped offset an increase this year in Social Security taxes, which has lowered take-home pay for most Americans.
Other data showed that jobless claims in the USA fell by 12,000 to 334,000 in the week ending June the 8th.
With the better-than-expected jobs data and increasing signs that the US economy is on track for a strong recovery speculation is now certain to increase over whether the Federal Reserve will choose to reign in its monetary easing policy.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6382
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7501
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0449
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 94.4076
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0162
The Pound Sterling/ US Dollar Exchange Rate is currently in the region of: 1.5667
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3330
The Australian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9570
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9840
The New Zealand Dollar/US Dollar Exchange Rate is currently in the region of: 0.8003
(Correct as of 14:30 pm GMT)
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