The dollar rose high against the Yen after data on retail showed a rise by more than expected, easing concerns about a forthcoming US recession. The dollar strengthened and the demand for US and euro zone government eased as the data lowered the chances of a rate cut by the Feds. Against the pound, the dollar also inclined as more bad news on the state of the US housing market supported expectations the BOE are set to lower its benchmark interest rate.
According to statistics, the dollar rose 0.8% to 108.18 yen and the euro fell 0.1% to reach the level of $1.4567 led by a surprising gain in the US auto retail sales rose 0.3% in January. Observers were definitely dazzled by the report as most analysts expected auto sales in particular to drop.
As for the Canadian dollar it has been locked with in a relatively narrow range lately yet the trend is likely to change as merchandise trade data arrive tomorrow and manufacturing shipments report due out on Friday.
Markets are waiting for more information on the US economy as participants want to get clearer read in terms of whether the economy is moving into a recession or not
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