Mon, 17 May 2010 00:00:00 +0200

Dollar Closes another Bullish Week Vs. The Majors

The Dollar rallied against most of the major currencies for the fourth consecutive week. The Dollar gained about 700 pips against the Euro and about 600 pips against the Pound. The Dollar also reached an 18-month high against the Euro. The Dollar continues to strengthen against its major counterparts as the data from the U.S. economy continues to provide recovery signals. The Retails Sales report showed that the total value of sales at the retail level rose for the seventh month in a row in April. The ongoing improvement of the retail sales indicates that the U.S. consumers feel safer regarding their financial outlook, and as a result increase their total amount of spending. Another consumption related data that was published last week was the University of Michigan Preliminary Consumer Sentiment survey. The survey also stated that the confidence among U.S. consumers has increased in May. These results prove yet again that the American economy is recovering in a faster pace than what was previously expected. It currently seems that for as long that the U.S. economy will continue to provide positive data, the Dollar's bullish trend is likely to continue. Looking ahead to this week, many interesting economic publications are expected from the U.S. Traders are advised to follow the Building Permits and the Producer Price Index on Tuesday, the Consumer Price Index on Wednesday, and the weekly Unemployment Claims on Thursday, as these publications are expected to have the largest impact on the Dollar. If the results will continue to provide recovery signals, the Dollar is likely to rise as a result.

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