The USD rose pretty much. Overview for 17.09.2021

EURUSD dropped on Thursday in response to American statistics; investors like the “greenback” again. 

The major currency pair is looking weak on Friday. The current quote for the instrument is 1.1777.

The Retail Sales in the USA added 0.7% m/m in August after losing 1.8% m/m in July and against the expected reading of -0.7% m/m. On YoY, the indicator added 15.1%.

The Core Retail Sales m/m showed 1.8% m/m after being -1.0% m/m the month before and against the expected reading of -0.1% m/m. 

Investors were lightning-fast in their response. Solid numbers “smoothed” their concerns about the insufficiently strong recovery of the American economy. In addition to that, they believe that based on this data the US Federal Reserve may reduce its stimulus programs ahead of the schedule. The regulator’s meeting is planned for the next week, so these expectations are well justified. However, a single fact of strong numbers is very unlikely to distract the regulator. Then again, market players always tend to be emotional. 

The very least what investors are expecting from the Fed’s meeting is a clarification of the issues relating to the QE reduction and interest rates. The more comments about an early reduction of the stimulus, the better for the “greenback”. It will mean that the regulator is pretty close to tightening its monetary policy. 

The weekly report on the Unemployment Claims in the USA showed 332K after being 312K the week before. Overall, the data is looking quite neutral.