EURUSD is growing slowly and quietly while investors are following the statistics and waiting for the Fed meeting results. The major currency pair continues rising a little bit on Wednesday, slowly and steadily. The current quote for the instrument is 1.2121. The statistics on the Retail Sales published by the USA yesterday were surprising. In May, the indicator showed -1.3% m/m after being 0.9% m/m in April and against the expected reading of -0.6% m/m. the Core Retail Sales showed -0.7% m/m against the expected reading of 0.4% m/m.
The components of the report show that major expenses in May were for services but not goods. It’s rather unusual but easy to explain. The effective anti-coronavirus vaccination campaign allows the population to move around the country more actively, more especially as the current season implies traveling.
In addition to that, other activities that were earlier limited due to the pandemic are also back. There is a demand for air travel and hotel accommodation services, expenses on entertainment are increasing. The demand is based on not only the vaccination but also low rates and a record-breaking infusion of money into the country’s economy. The Capacity Utilization Rate went from 74.6% in April to 75.2% in May, it’s very positive.