US consumers felt more confident in July – retail sales rose to 0.5%, slightly better than a rise of 0.4% that was expected. Also core retail sales exceeded expectations with a rise of 0.5%, better than +0.2% that was predicted.
EUR/USD is on the rise, in classic risk appetite trading. USD/JPY and USD/CHF are making small gains.
Last month’s figures were also revised to the upside. Retail sales were revised to a rise of 0.3% instead of 0.1%. Core retail sales, which were initially reported to be flat, rose by 0.3% in June.
Earlier this week, we got some positive news from the US job market: weekly unemployment claims dropped to the lowest level since April, to 395K.
Later today, the University of Michigan will release its preliminary Consumer Sentiment figure. It’s expected to tick down to 63.2 points. Business Inventories are expected to rise by 0.6%.
This has been one of the most volatile weeks in stock markets and also in forex trading, with more high volatility expected towards the close.
Euro/dollar is still capped by the 1.4282 line at the moment, at the top of the trading range. Further levels above are 1.4325 and 1.4375. Below, 1.4220 and 1.4160 provide support. For more on EUR/USD, see the euro to dollar forecast.
