Dollar gains after strong US retail sales data
The dollar rallies after data showed that US retail sales rose sharply after two straight months of monthly declines, suggesting the Federal Reserve will keep interest rates higher for some time.
US retail sales rose 3% last month. The December data were not revised and showed sales down 1.1% as previously reported. Economists had forecast sales to rise 1.8%, with estimates ranging from 0.5% to 3%.
Last month's unexpectedly strong jobs report and still solid wage growth bode well for consumer spending, with some economists speculating that economic growth may accelerate, something the Fed that has been aggressively hiking interest rates since last March in an attempt to slow growth and lower inflation does not want.
The dollar rallies after data showed that US retail sales rose sharply after two straight months of monthly declines, suggesting the Federal Reserve will keep interest rates higher for some time.
US retail sales rose 3% last month. The December data were not revised and showed sales down 1.1% as previously reported. Economists had forecast sales to rise 1.8%, with estimates ranging from 0.5% to 3%.
Last month's unexpectedly strong jobs report and still solid wage growth bode well for consumer spending, with some economists speculating that economic growth may accelerate, something the Fed that has been aggressively hiking interest rates since last March in an attempt to slow growth and lower inflation does not want.