EUR/USD – hold sell positions from the level of 1.2080 with Stop Loss at 1.2125.
Today, the US unveiled its retail sales report. The indicator advanced by 5.3% whereas economists had expected a smaller rise of 1%.
Retail sales, excluding automobile sales, jumped even more – by 5.9%.
A strong rise in retail sales is usually a signal of the final stage of the economic cycle. Higher salaries and consumer activity characterize this period. If this continues, the US Fed will have to take a close look at the inflation level. This is the main driver for the US dollar rally.
Buy positions could be opened at the level of 1.2170.