Asian Session – Dollar bolstered by US retail sales and more tapering expectations
January 15, 2014 7:34 am
The US dollar was bolstered by better-than-expected US retail sales data, which helped ease concerns about the pace of growth in the US economy. Investors felt more confident in buying back the dollar after its recent retreat on the back of weak nonfarm payrolls on Friday.
December US retail sales edged up in December by 0.2% while a core gauge posted a larger increase of 0.7% versus 0.4% expected. The data showed that American consumers spent more and that the US economy picked up at the end of last year, giving hope for stronger growth in 2014.
Also lending support to the dollar were comments from two hawkish Federal Reserve policymakers (Richard Fisher and Charles Plosser ) who signaled they are in favour of tapering and winding down the Fed’s current bond buying program.
As a result of investors’ expectations of a Fed rate hike now being brought forward, this helped the greenback resume strength against its major counterparts.
The dollar built on Tuesday’s recovery against the yen, climbing to highs of 104.46 in the Asian session. Yesterday the dollar rallied more than 1% against the yen to pull away from a near one-month low of 102.84 hit on Monday. The dollar ended the Asian session at 104.40 with a 0.18% gain versus the yen.
The euro retreated after a post-Nowotny rally yesterday. The ECB policymaker made some upbeat comments saying the Eurozone growth outlook looks good and economic growth may exceed expectations in 2014.
The euro hit a two-week high after the comments, just below 1.3700 and has since slipped on broad USD strength to 1.3638, down 0.3% in the Asian session.
Against the yen, the euro stayed close to yesterday’s high of 142.61 yen, slipping to 142.37.
Sterling is down 0.14% to 1.6415 as a result of a stronger dollar. On Tuesday, UK inflation showed a slower pace of growth at 2%.
The Australian dollar extended losses in Asia, down 0.5% to $0.8914, reversing a recent rally to 0.9100 early in the week.
The US dollar was bolstered by better-than-expected US retail sales data, which helped ease concerns about the pace of growth in the US economy. Investors felt more confident in buying back the dollar after its recent retreat on the back of weak nonfarm payrolls on Friday.
December US retail sales edged up in December by 0.2% while a core gauge posted a larger increase of 0.7% versus 0.4% expected. The data showed that American consumers spent more and that the US economy picked up at the end of last year, giving hope for stronger growth in 2014.
Also lending support to the dollar were comments from two hawkish Federal Reserve policymakers (Richard Fisher and Charles Plosser ) who signaled they are in favour of tapering and winding down the Fed’s current bond buying program.
As a result of investors’ expectations of a Fed rate hike now being brought forward, this helped the greenback resume strength against its major counterparts.
The dollar built on Tuesday’s recovery against the yen, climbing to highs of 104.46 in the Asian session. Yesterday the dollar rallied more than 1% against the yen to pull away from a near one-month low of 102.84 hit on Monday. The dollar ended the Asian session at 104.40 with a 0.18% gain versus the yen.
The euro retreated after a post-Nowotny rally yesterday. The ECB policymaker made some upbeat comments saying the Eurozone growth outlook looks good and economic growth may exceed expectations in 2014.
The euro hit a two-week high after the comments, just below 1.3700 and has since slipped on broad USD strength to 1.3638, down 0.3% in the Asian session.
Against the yen, the euro stayed close to yesterday’s high of 142.61 yen, slipping to 142.37.
Sterling is down 0.14% to 1.6415 as a result of a stronger dollar. On Tuesday, UK inflation showed a slower pace of growth at 2%.
The Australian dollar extended losses in Asia, down 0.5% to $0.8914, reversing a recent rally to 0.9100 early in the week.
Related Posts: