By CountingPips.com
The US Dollar has been on the defensive today in forex trading against most of the other major currencies as risk appetite flowed with the positive U.S. economic releases out today. US retail sales, released by the Department of Commerce, surpassed expectations with a 2.7 percent monthly gain in August after a revised 0.2 percent fall in July. Core retail sales, excluding auto sales, rose by a more modest 1.1 percent following July’s 0.5 
percent decline. The Empire manufacturing survey also increased more than expected in September to score its highest reading since 2007. Manufacturers moods improved by 7 points in September from August.
US producer price inflation increased by 1.7 percent in August and surpassed forecasts expecting a 0.8 percent rise. On an annual basis, producer prices are 4.3 percent below the August 2008 level. Core producer prices, minus food & energy, rose by 0.2 percent in August and registered a 2.3 percent gain on an annual basis.
The US stock markets gained today for the second straight day with the Dow gaining by approximately 55.25 points, the Nasdaq increasing 9.94 points and the S&P 500 up by 3.22 points. Oil traded higher to $70.88 while gold climbed $8.10 to $1008.00 per ounce.
The US dollar has been losing ground to the euro in trading today while also trading lower versus the Australian dollar, New Zealand dollar and Canadian dollar. The dollar has gained ground today against the British pound while trading close to unchanged versus the Swiss franc and Japanese yen at 4:24pm EDT according to according currency data by Oanda.
EUR/USD Daily Chart – The euro, gaining for the second straight day versus the dollar, almost reached the 1.4700 threshold before retreating slightly lower. The euro has gained eight out of the last ten days to reach its highest levels of the year. Chart by MarketClub.
