AFP, New York :
The dollar strengthened against the euro Friday after solid US economic data supported the Federal Reserve’s plan to raise interest rates, rebounding from a week in retreat.
Retail sales in June jumped 0.6 percent, much better than expected, signaling stronger growth in consumer spending that drives about two-thirds of the US economy. Inflation held steady last month but a key core measure pointed to a slow pickup in price gains.
“Big day for US data, stronger than expected for the most part, especially in retail sales,” said Vassili Serebriakov of Credit Agricole.
The dollar rose 0.7 percent to $1.1041 per euro. “The odds of a rate hike before the end of the year have been moving higher, so that’s helping the dollar,” Serebriakov said.
The Federal Reserve has not raised interest rates since December, but has been actively weighing doing so all year.
The dollar strengthened against the euro Friday after solid US economic data supported the Federal Reserve’s plan to raise interest rates, rebounding from a week in retreat.
Retail sales in June jumped 0.6 percent, much better than expected, signaling stronger growth in consumer spending that drives about two-thirds of the US economy. Inflation held steady last month but a key core measure pointed to a slow pickup in price gains.
“Big day for US data, stronger than expected for the most part, especially in retail sales,” said Vassili Serebriakov of Credit Agricole.
The dollar rose 0.7 percent to $1.1041 per euro. “The odds of a rate hike before the end of the year have been moving higher, so that’s helping the dollar,” Serebriakov said.
The Federal Reserve has not raised interest rates since December, but has been actively weighing doing so all year.
