Forex
online trading has seen a surprising, and very much welcomed trend in
the U.S economy, with U.S retail sales marking an unexpected jump in
July, the first month-on-month increase in four months.
According to the Commerce Department, retail sales surpassed original
expectations of 0.3 percent growth to a solid 0.8 percent, a big
turnaround from the 0.7 percent drop markets saw in June.
In addition, economy watchers saw spending pick up in all thirteen
categories, from cars, electronics and sporting goods to furniture,
garden equipment and building supplies, which can imply a housing and
construction improvement as well.Forex
online trading records haven’t seen this kind of purchase-enthusiasm
since 2005, which clearly indicates a consumer confidence that could
very well allay some economic fears established during the big
recession.
“Lower fuel prices and a modest growth in the economy helped spur the
0.8 percent increase, which is 4.1 percent higher than July from last
year”, said Jenifer Lee, senior economist at BMO Capital Markets.
Investors are very aware of where this trend is going, and they are
right to be so. Consumer spending accounts for nearly 75 percent of the
U.S GDP. If this turns out to be the beginning of a sustained growth
trend, a better perspective about the U.S in the long-term could arise,
which in turn could benefit the U.S dollar in the forex online trading
market.
In effect, the U.S dollar soared against its main currency
counterparts. The EUR/USD dropped during the day around 1.2280, and is
now on the rise at 1.2290. USD/JPY continued the upwards impulse and
reached 79.
Still, U.S overall recovery remains fragile. Some economists cautioned
that consumers will likely sustain their new spending habits only if
hiring continues to strengthen. In the meantime, many remain anxious
about the job market and held back by slow wage gains and high debts.
And numbers validate this notion. The American economy grew at an
annual rate of just 1.5 percent from April through June, with inflation
numbers being mild and unemployment remaining high, with 12.8 million
people still looking for a job.
But staying with the general notion of optimism, some forex online
trading experts believed that the Fed’s QE3 was inevitable, preparing
themselves for the theoretical scenario. However, with the recent
results, some investors think that the Federal Reserve will be hesitant
to take further action to boost growth when its policy committee meets
in September, taking a more wait-and-see approach.
Forex online trading has seen a surprising, and very much welcomed
trend in the U.S economy, with U.S retail sales marking an unexpected
jump in July, the first month-on-month increase in four
months. According to the Commerce Department, retail sales surpassed
original expectations of 0.3 percent growth to a solid 0.8 percent, a
big turnaround from the 0.7 percent drop markets saw in June. In
addition, economy watchers saw spending pick up in all thirteen
categories, from cars, electronics and sporting goods to furniture,
garden equipment and building supplies, which can imply a housing and
construction improvement as well. Forex online trading records haven’t
seen this kind of purchase-enthusiasm since 2005, which clearly
indicates a consumer confidence that could very well allay some economic
fears established during the big recession. “Lower fuel prices and a
modest growth in the economy helped spur the 0.8 percent increase, which
is 4.1 percent higher than July from last year”, said Jenifer Lee,
senior economist at BMO Capital Markets. Investors are very aware of
where this trend is going, and they are right to be so. Consumer
spending accounts for nearly 75 percent of the U.S GDP. If this turns
out to be the beginning of a sustained growth trend, a better
perspective about the U.S in the long-term could arise, which in turn
could benefit the U.S dollar in the forex online trading market. In
effect, the U.S dollar soared against its main currency counterparts.
The EUR/USD dropped during the day around 1.2280, and is now on the rise
at 1.2290. USD/JPY continued the upwards impulse and reached 79. Still,
U.S overall recovery remains fragile. Some economists cautioned that
consumers will likely sustain their new spending habits only if hiring
continues to strengthen. In the meantime, many remain anxious about the
job market and held back by slow wage gains and high debts. And numbers
validate this notion. The American economy grew at an annual rate of
just 1.5 percent from April through June, with inflation numbers being
mild and unemployment remaining high, with 12.8 million people still
looking for a job. But staying with the general notion of optimism, some
forex online trading experts believed that the Fed’s QE3 was
inevitable, preparing themselves for the theoretical scenario. However,
with the recent results, some investors think that the Federal Reserve
will be hesitant to take further action to boost growth when its policy
committee meets in September, taking a more wait-and-see approach.
Article Source:
http://www.tradeviewforex.com
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