American dollar keeps gaining on strong US retail sales data, Euro tottered

by   |  VIEW 858
American dollar keeps gaining on strong US retail sales data, Euro tottered

On Thursday, the 18th of April 2019, the American Dollar index (DXY) had gathered momentum on a robust retail sales data and a fall of initial jobless claims to a record 50-year low, posting an intra-day gain of 0.43 percent to 97.43, posting its best level since March 8th, 2019.

While the American Dollar had gained against five out of six major currencies, the euro was again haunted by a weaker manufacturing data over the bloc. US retail sales in March had surged by the most in 1 and a ½ year, as purchases of household goods, motor vehicles alongside a range of other goods had contributed to the upsurge, signaling an amplification of economic growth after a false start of the first quarter.

Besides, initial jobless claims fell to a near-50 year low in last week, indicating an underlying strength on the US job market, while the paint was much blurrier over the euro zone economy, as the fourth largest economy of the world, Germany’s manufacturing output had shrunk for fourth straight month in April, while France had also depicted a similar picture.

Addressing to the dominance of American dollar, head of FX strategy at Westpac Banking Corp. in New York, Richard Franulovich said, “In the space of several hours we got a timely reminder that the growth leadership is very decisively in favour of the U.S.

dollar,” while pointing towards investors’ fear over eurozone economy, a senior analyst at ActivTraders in London, Ricardo Evangelista said, “Investors are worried about the health of the global economy and the eurozone and the fortunes of the euro are closely tied with that”.

Citing statistics, at the Thursday’s (April 18th) market closure, Euro was 0.59 percent down to $1.1226 against US dollar, while Japanese Yen posted a slight gain of 0.05 percent to 111.97 yen. Australian Dollar ended the day down by 0.40 percent to $0.7148, and the British Currency winded up the day 0.37 percent lower to $1.2989 against US dollar.

Apart from that, USD/CAD pair gained 0.26 percent to $1.3382, while the US currency had breached a two-year high against a weaker Swiss Franc, posting a gain of 0.48 percent to 1.0151, its highest daily closure since January 6th 2017.