Dollar strengthens as retail sales likely to boost tapering

The dollar strengthened against most major currencies while US treasury yields rose ahead of retail sales figures this morning that are expected to increase the likelihood of quantitative easing (QE) tapering next week.

Bloomberg data shows that the dollar has strengthened against 14 of its 16 major currency peers, reversing a trend of slight weakness in recent days.

The currency moves comes ahead of data out today that is expected to show that U.S. retail sales accelerated in the past month, indicating the US economic recovery is gathering pace and increasing the likelihood that the US Federal Reserve will announce a reduction in its bond-buying programme on Wednesday next week.

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