Today, on June 12th, the US Dollar has already dropped 0,1% against a basked of 6 other major currencies. This happened after several economic reports from the USA were released during the american trading session. The list included initial and secondary jobless claims as well as retail sales in May, Market Leader reports.
The US data came out worse than expected. The retail sales kept on growing in May. There was a 0,3% increase. Still, this was not enough since exerts had expected +0,7% during the reporting period. The pace of retail sales growth in April was revised and improved from 0,1% up to 0,5%. The retail sales volume increase mainly due to higher car sales while the sales of electronics, food, clothes and sportswear declined.
It should be noted that retail sales account for 1.3 of the entire consumer spending volume in the USA, which is the engine of the US economy. Over the last 3 months, the US retail sales gained 4,3% y/y. The import and export prices gained 0,1% in May.
At the same time, the amount of Americans that applied for unemployment benefits last week increased slightly. The amount of initial jobless claims increased by 4000 up to 317 000 claims. The initial claims indicate the amount of recent dismissals.
USD Index
According Masterforex-V Academy, the H1 chart of the USD index is currently showing us that the US Dollar lost a bit of its value against other majors, which is a natural outcome if to consider the recent economic reports we have just mentioned.
The mid-term rally that started on June 6th from the local high low of 80,24 is suspended and the price is consolidating within the scope of the 80,67-80,90 range while deciding on the direction of the forthcoming momentum.
According to the synthesis of binary laws under the Masterforex-V trading strategy, the upward move was suspended after breaking the MF sloping channel. The consolidation range is subject to internal bearish pressure. The price is going down to the bottom of the range.
If the price overcomes the 80,67 support, this will give way to 80,56.
Alternatively, if the situation is backed by the bulls, we are likely to see the price going up to 80,90. A break above it will give way to 81,02 – June’s high.
