US Retail Sales Give USD a Boost vs. JPY

The USD/JPY shot up to its highest level in almost a month yesterday, after positive US retail sales data signaled to investors that the American economic recovery is progressing quicker than originally thought. The pair was up more than 50 pips during European trading to reach as high as 78.92. A slight downward correction later in the day brought the dollar down to the 78.80 level. Against the Swiss franc, the greenback also saw gains of around 50 pips before peaking at 0.9743. By the afternoon session, the USD/CHF was trading around the 0.9730 level. Turning to today, dollar traders will want to pay attention to a batch of US news scheduled to be released during mid-day trading. The Core CPI and Empire State Manufacturing Index, both set to be released at 12:30 GMT, have the potential to lead to additional gains for the greenback if they come in above their forecasted levels. Additionally, the TIC Long-Term Purchases at 13:00 GMT may signal additional growth in the US economy if it comes in above the expected 47.5B.

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