The US dollar extended gains against other major currencies on Tuesday, helped by the release of upbeat US retail sales data and as market sentiment continued to improve amid easing tensions between the US and North Korea.
Retail grew by 0.6% month-over-month in July 2017, following an upwardly revised 0.3% gain in June and beating market expectations of 0.4%. It was the sharpest increase in retail trade since December of last year, mainly driven by higher sales at miscellaneous store retailers and motor vehicle and parts dealers. This data set has brightened the outlook for economic growth in Q3.
A separate report showed that the Empire State manufacturing index climbed to 25.20 in August from 9.80 the previous month, beating expectations for a reading of 10.00. It was the highest level since September 2014.
Source: www.investing.com, Spotlight Ideas
The chart above shows that the dollar has gained against the euro during August with an excellent rotational signature within the corrective. The time-based technical analysis has a bearish lilt in the middle of the time measures and it would not be too surprising to see further dollar gains until the end of the week.
To add more support to this one can see the dollar also has retained support in the market after New York Federal Reserve President William Dudley said on Monday that he favoured another interest rate hike this year if the economic conditions evolved in line with his expectations.
EURUSD six-year chart:
Entry: sell 1.1713 1440 GMT.
Targets: 1.1674… 1.1630… 1.1614… 1.1588.
Time horizon: medium-term.
— Edited by Michael McKenna
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