The US dollar appreciated strongly against the euro, approaching to the level of $ 1.1200, helped by the publication of data waiting on US retail sales. The growth of the dollar increased after it became known that sales increased more than forecast. Today, the Commerce Department reported that US consumer spending rebounded in January, as households increased their purchases of various goods, sparking hope that economic growth accelerated after slowing in late 2015. Retail sales excluding autos, gasoline and building materials and catering services increased by 0.6 percent last month after falling 0.3 percent in December. These so-called core retail sales is most closely correlated with consumer spending as a component of GDP. Economists had forecast that sales will increase by 0.3 percent. Growth in consumer spending, which accounts for over two-thirds of US economic activity was moderate in the fourth quarter. This, along with weak growth of exports due to the strong dollar, business efforts on selling stocks and reducing the cost of capital goods among energy companies, restrained GDP growth to an annual rate of 0.7 percent. Consumer spending is currently supported by the strengthening of the labor market. Overall, retail sales rose 0.2 percent in January, as cheaper petrol has led to a reduction in the cost of service stations and severe winter weather has reduced costs in restaurants and bars.
Sentiment also improved significantly on the background of rising oil prices after the Thursday evening Minister of Energy of the United Arab Emirates announced the availability of OPEC to negotiate with other exporters to cut production.
The British pound fell sharply against the dollar, returning to the level of opening of the session, as strong data on US retail sales supported the US currency. Earlier, during the trading session for a couple of influence increased demand for the pound and increased risk appetite. A slight effect on the dynamics of the pound have data on the volume of construction in the UK. British construction output grew at a slower-than-expected pace in December, after falling in the previous month, data showed on Friday, the Office for National Statistics. Construction output increased by 1.5 percent for the month in December, succeeding the fall of 1.1 percent in November. The expected growth rate was 2.0 percent.
The increase in December was largely due to an increase of 2.6 per cent of total new orders. This was offset by the repair and maintenance sector, which was down 0.5 percent. On an annual basis, construction output grew by 0.5 per cent at the end of the year, which was below the expectations of economists rise by 0.8 percent. In November, production fell by 0.9 percent. On the whole, in 2015 the total volume in the construction sector expanded by 3.4 percent in comparison with 2014 year.
The yen fell against the dollar significantly, approaching to yesterday's low in view of the increase in risk appetite and upbeat data on US retail sales. Support was also provided statements of the Federal Reserve Bank of New York William Dudley. He noted that the US economy is in good enough shape to withstand any shocks. "Despite an era of strong growth, monetary policy remains very accommodative. This somewhat limits its ability to reflect external shocks, but the good news is that it is now less susceptible to shocks. Consumer, are in good shape. Regulation of the financial system has improved thanks to enhanced capitalization of the banking sector ", - said Dudley.
Little influenced by the preliminary results of the studies submitted by Thomson-Reuters and the Institute of Michigan. It is learned that in February the US consumers feel more pessimistic about the economy than last month. According to published data, this month the index of consumer sentiment fell to 90.7 points compared with a final reading of 92.0 points in January. According to experts the average index had to stay at the level of 92.0 points.