US Dollar (USD) Exchange Rate: ‘Greenback’ Weaker Ahead of Retail Sales Data
The US Dollar is trading weaker against the Pound and tumbled to its lowest level in three weeks against the Euro as economists increase their bets that this afternoon’s US retail sales data will show that sales stagnated in January.
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Investors are expecting the data due at 1.30pm to show that sales slumped in January after the 0.2% rise recorded in December. The data is expected to add further doubts over the state of the US economic recovery and raise fears that it has lost momentum.
“There’s risk off in the market on concern that the US economy might be slowing down more rapidly than people had been expecting. We’re waiting for retail sales this afternoon and we might be in for a disappointment, which is expected to weigh on the Dollar,” said the head of forex trading at Danske Bank.
The currency could recover ground against the Euro on Friday if a GDP estimate comes in below expectations. A recent run of mixed data has painted a mixed picture of the Eurozone economy but reports today suggest that the area’s recovery could be slowing. Unemployment in Greece hit a new record high and inflation in Germany eased further away from the European Central Bank’s target.
The US Dollar may have been trading down against the Pound and Euro but against the Australian Dollar the ‘Greenback’ made gains after a jobs report out of the South Pacific nation showed that unemployment in the country climbed to its highest level in ten years.