This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Retail Sales Data Rattle Dollar

New government data showing more evidence of a weakening U.S. economy undermined the dollar against the euro Friday.

Euros were selling for $1.3892, up from $1.3886 late Thursday.

Traders had to contend with several items providing feedback on the economy, but one in particular stood out for suggesting a slowdown by consumers.

The Commerce Department's retail sales report for August was worse than expected, showing a 0.3% increase on the headline number and a 0.4% decline when auto sales were excluded. Both were weaker than the consensus forecasts.

"It's certainly another negative for the dollar," says David Powell, a currency strategist at IDEAglobal in New York. "It shows the American consumer tightened his or her wallet."

However, Powell adds there could be worse to come because the statistics don't capture the deteriorating jobs market in September or the declining availability of consumer credit.

In other currencies, the dollar was rallying against the British pound on news of a banking crisis in the United Kingdom.

One pound was buying $2.0286, down from $2.03 a day earlier.

The Bank of England, roughly equivalent to the Federal Reserve, said it was helping prop up ailing mortgage lender Northern Rock. Even so, panicked customers were rushing to withdraw savings from the bank. Shares of Northern Rock sank in European trading.

Investors are worried problems in the banking system will spill over to the rest of Britain's economy, explains Ellen Zentner, an economist at Bank of Tokyo-Mitsubishi UFJ in New York.

There is also concern from investors that toxic mortgage debt created in the U.S., but now owned by European money managers, may still implode, causing another banking problem in Europe, she adds. Such events would spark further currency market gyrations.

As for other currencies, the dollar was selling for 115.13 yen, vs. 115.25 yen previously.

The PowerShares DB G10 Currency Harvest (DBV), which invests in a variety of currencies, was edging ahead by 0.1%.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DBV $23.29 0.00%
AAPL $122.37 0.00%
FB $95.21 0.00%
GOOG $632.59 0.00%
TSLA $266.79 0.00%

Markets

Chart of I:DJI
DOW 17,745.98 -5.41 -0.03%
S&P 500 2,108.63 +0.06 0.00%
NASDAQ 5,128.7850 +17.0520 0.33%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs