Wednesday saw the world's reserve currency advance against its top rivals after the release of economic data showing retail sales in the U.S. last month were stronger than forecast, Bloomberg reports.
Retail sales advanced 1.1 percent in February from the month prior, which pushed past the gains of 0.2 percent from December 2012 to January. The sharp increase demonstrates prospects for the U.S. economy, the globe's largest, are brightening during the global recovery from the Great Recession.
"We only see definitive signs of recovery in the U.S. and nowhere else," managing partner Stephen Jen with SLJ Macro Partners LLP said during a Bloomberg-sponsored debate in London on Wednesday. "In the world where growth is decoupling and the U.S. is leading the world into a recovery, the dollar will perform quite well as risk capital is attracted into the U.S. It's very hard to short the dollar now."
Reuters reports the Wednesday trade session kicked off with the U.S. dollar slipping the Japanese yen but those losses reversed in the aftermath of the U.S. Commerce Department releasing the retail sales data.
The greenback also performed strongly against the common currency of the European Union, as propelled by the Commerce Department data.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
