Excerpt from: Forex News
|
 |
| May 13, 2009 | | U.S. dollar could gain in forex trading on safe haven demand | April retail sales numbers are in, and they are lower than expected. Economic forecasters had expected to see modest increases in retail sales, since consumer confidence has been rising and Easter occurred in April this year. However, there was a surprising drop in retail sales, with a 10% decline year-over-year.
Leading the drop in retail sales were gas sales. Demand for gasoline continues to wane in the U.S., and gas prices are holding relatively steady, so there is no incentive to pick up the pace of consumption.
There was an increase in auto sales, albeit a small one. Dealer and manufacturer incentives are spurring car buying. With autos at their lowest prices in years, it is no surprise that people are buying.
This may have the effect of giving the U.S. dollar a boost in forex trading. With economic news on the decline for now, the greenback may be sought as a safe haven investment if risk aversion makes a comeback.
| Topic Tags: dollar forex trading, forex trading, gas prices, investment, retail sales, safe haven, U.S. dollar | |
|
|
