It’s been a rough couple days for the U.S. economy, but a strong retail report earlier today helped boost the outlook for the future of the USD.
Retail rose 0.6 percent in June, which is more than double what was gained in May. Part of the reason for this raise was attributed to shrinking unemployment numbers and a raise in worker wages. This means Americans have more money to spend on goods, and spend they have.
“This ends up capping a really great quarter for consumer spending,” said Omair Sharif, senior U.S. economist at Societe Generale in New York. “There’s a bit more confidence about job security, there’s a bit more confidence about where things are headed in terms of wages and the economy. All of that is combining to give us the rebound we’re seeing in retail sales.”
Retail sales have increased across the board. 11 of the 13 major retail categories showed an improvement in demand.
Everything from sporting goods and building material (3.9%) to new cars (0.1%) and gas station receipts (1.2%) saw their demand increase.
Each of these “core sales” contributes to the overall figure used to calculate the U.S.’s gross domestic product, which rose by a half of a percent.
A country’s GDP is the most common way of evaluating the strength of that country’s economy, so a rising GDP will employ more confidence in the struggling U.S. economy.
A raise in sales and GDP will bring more confidence in the $USD in the Forex markets. Couple that with the volatility of the $GDP and you have a prime trading window. Learn how you can potentially profit off this volatility in a FREE webinar.
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