The Philadelphia Fed's index published today was able to gain significantly and also the other data was consistently positive. The British Pound also benefited from a positive trend in retail sales and is trading higher.
Philly Fed Index shows increased willingness to invest in the USA
While analysts expected an increase from 0.3 points in the previous month to 5.0 points, the index improved massively to 21.0 points. It thus reached its highest level since October last year. This and the rise in the other activity indices point to a significant rise in optimism and an increased willingness to invest in the US economy. The value of employment was also significantly better at 30.0 points compared with 15.4 points in the previous month, and the value for business conditions improved from 21.4 points to 38.0 points.
The US dollar is benefiting from the positive data and is somewhat stronger against most majors. Against the euro, it scratched back at the 1.12 USD mark, but was unable to break through it with a current daily low of 1.1206. The EUR/USD pair is currently trading at 1.1214, a drop of 0.07%. The greenback has also gained against the Japanese yen, breaching the 108 yen level for a short period. However, the USD/JPY pair is currently trading just below it at 107.95 Yen.
GBP benefits from increased retail sales
The British Pound is also benefiting from positive economic data today. This morning's retail sales figures for the U.K. have significantly exceeded expectations. While analysts expected a month-on-month decline of 0.3% and a year-on-year increase of 2.6%, the monthly figure rose by a smooth 1.0% and the annual figure by a solid 3.8%.
The British Pound is currently gaining 0.37% against the U.S. Dollar and is trading at 1.2475 from a current high of 1.2495. The Pound is also strengthening against the Euro, as the EUR/GPB pair is losing 0.35% at 0.992 from a current low of 0.8979 GBP.
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