Forex – Dollar Rides Strong U.S. Retail Sales, Euro Slump to 2-Week High

© Reuters. – The U.S. dollar rallied to a two-week high against its rivals Thursday as a rout of the euro prompted traders to buy the greenback after the European Central Bank said it would leave interest rates unchanged until the summer of 2019.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 1.05% to 94.54.

The European Central Bank said it would wind up its bond-buying programme in December but tempered expectations for tighter monetary policy measures by conceding that interest rates would be left unchanged until the summer of 2019.

fell 1.26% to $1.1643.

The ECB’s somewhat dovish statement paled in comparison to Federal Reserve’s, as the U.S. central bank on Wednesday raised its outlook on interest rates for this year to four from a total of three previously.

“While the path is not what we expected, the later start for rates hikes is what we thought was appropriate given the slow progress on inflation,” TD Securities said.

The rally in the dollar was also supported by upbeat U.S. economic data, further strengthening the narrative of a strong U.S. economy.

The Commerce Department said on Thursday that retail sales fell . That confounded economists’ forecast for a rise of just 0.4%. The retail sales control group – which has a larger impact on U.S. GDP – , topping expectations for a 0.4% rise.

fell 0.52% to $1.3305 despite data showing a sharp rebound in the U.K retail sales.

rose 0.70% to C$1.3077 as falling oil prices weighed on the loonie, supporting the pair.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.