The sudden turn to safe-havens by investors since last Friday has helped currencies such as the US dollar and Japanese yen make gains against most of their currency rivals. Tomorrow’s retail sales reports out of the United States may help the greenback hold on to a fair amount of these gains in short-term trading.
The US retail sales data has been published with positive results for the past several months, with the lowest figure since last July being released in February 2011. Last month’s higher than forecast reading helped the greenback sustain itself amid global weakness in its value. This month’s reading, if published as expected, should also help the USD shore-up some of its recent gains.
Core retail sales figures are expected to come out with an identical reading as last month’s 0.7% gain, though general retail sales may see less growth than last month’s 1.0% reading. Nevertheless, both figures should help the dollar hold its ground until Thursday as short-term and technical traders price in the positive figures.
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
