U.S. retail sales in July recorded their biggest gain in four months, helping calm market fears of a recession in the world’s biggest economy.
Retail sales jumped by 0.5 percent, the highest since March this year,, and beat economist forecasts of a mere 0.2 percent gain. June data was upwardly revised to a 0.3 percent gain.
This is important data and affects the dollar because consumer spending accounts for two thirds of U.S. economic activity.
This sets of the third quarter on a good note, since economic growth was anemic in the first half of the year and unemployment remained high, causing tension in the markets and knocking down consumer confidence, especially after the U.S. lots its top notch AAA rating by Standard and Poor’s last week. This did harm to the dollar.
Global stock markets manage to regain some losses today after a turbulent week, but market sentiment is still fragile.
USDCHF jumped from pre-data level of0.7697 to 0.7724 within minutes after the data.