The U.S. dollar rose on Thursday as better-than-expected housing and employment data suggested the U.S. economy was improving, though hopes Europe was getting a handle on its debt crisis limited euro selling. By yesterday's close, the USD rose against the JPY, pushing the oft- traded currency pair to 82.95. The dollar experience similar behavior against the GBP and closed at 1.5890.
High unemployment and a lackluster housing market are the biggest obstacles to the U.S. economy's recovery, but stronger-than-expected data on jobless claims and existing home sales provided a glimmer of hope.
U.S. Federal Reserve monetary policy largely relies on labor market conditions and the pace of the economic recovery, so signs of improvement increase expectations of higher interest rates, which makes the dollar more appealing to investors.
As for today, the United States is not due to release much data of concern. Canada, on the other hand, is going to release vital data regarding its retail sales levels, which last week caused a stir among the USD and EUR. Growth in Canadian sales may help return the Loonie back to a more bullish posture, but forecasts appear modest at best.