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Sunday 15 May 2016

The dollar has renewed it's two-weeks maximum due to data from the US

The dollar reached a two-week peak against a basket of major currencies on Friday as US statistics strengthened the belief that the Fed could raise rates this year more than once.
The US currency showed the best two-week trend since the end of February. The "lizard" has grown a second consecutive session against the yen, reached a two-week high against the euro.
The data showed that retail sales in the US in April, made the biggest jump in a year - it suggests that the US economy is gaining momentum again after almost a complete stop of growth in the first quarter. Except for the scope of vehicles, fuel, building materials and catering, retail sales rose 0.9 percent in April after rising 0.2 percent in March, revised upward.
During morning trading the dollar index rose 0.7 percent to 94.768 points. The US currency strengthened even more after the growth of the University of Michigan's index of consumer sentiment to 95.8 this month - a record high value since June 2015 against the April's 89 evaluation points.
After the release of data on consumer sentiment, the euro fell 0.8 percent to $1.1291. However, the euro has ignored data showing the eurozone GDP growth of 0.5 percent in the first quarter - the statistics were revised downward.
Against the yen the dollar gained 0.17 percent to 109.20 yen, significantly moving away from a minimum of 18 months to 105.55 yen, braked last week after the Bank of Japan did not change its monetary policy.


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