Dollar gobbles up weekly gains on upbeat US retail sales data



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Dollar gobbles up weekly gains on upbeat US retail sales data

On Friday, the US Dollar Index (DXY) measured against a basket of six major currencies on an average edged higher to mark up its biggest weekly gain in more than a month as an unprecedented uptick in US retail sales in June that appears to have bolted out of the blues, had fleshed up anticipations that the world’s largest economy’s gross output had accelerated in second quarter of the year.

In point of fact, in the day’s blowout rally in the greenback was almost entire prodded by a US Commerce Department data that had unveiled the US retail sales soared as much as 0.9 per cent in June following a decline of 0.1 per cent in May, as consumers’ demands had witnessed a swift shift towards services from goods following an ease of pandemic-led restrictions.

Nonetheless, a survey data from the University of Michigan had revealed that US Consumer Confidence tumbled earlier this month, however, the data had little impacts on the greenback with a scary rise in inflation indicators cushioning up the American currency.

In factuality, earlier in the week, speaking in a Congressional hearing, the US Fed Chair Jerome Powell had pledged to maintain an accommodative policy until solid signs of labour market recovery, though a 13-year peak US Consumer Prices Index alongside a 10-1/2 year high producer price index in June had stoked optimism that the US Fed might hike interest rates earlier-than-slated, adding further bullish wind to the greenback.

US Dollar logs the strongest weekly gain in more than a month

Citing statistics, in the day’s FX market closure, the US Dollar Index (DXY) measured against a basket of six major currencies added 0.14 per cent to 92.67, while the greenback rose as much as 0.6 per cent over the week, remarking its largest weekly gain in more than a month.

Aside from that, the bloc’s common currency euro, shared among 19 eurozone member states, fell 0.06 per cent against its American peer to $1.1805, while British pound shed 0.45 per cent to $1.3763. In tandem, the safe-haven Japanese yen dropped 0.23 per cent to 110.06 per Yen, while another safe-haven asset Swiss Franc inched lower to wrap up the day at $0.9186.

Meanwhile, referring to a persistent flow of upbeat economic data, a senior market analyst at Western Union Business Solutions in Washington, Joe Manimbo said, “The data was consistent with the economy making substantial strides and cements expectations of very robust second quarter growth of around 10%”.