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USD Plunges on Weak Economic Data

US Dollar weakened against all its major counterparts after the weak retail sales and unemployment claims data was reported by the Census Bureau and Department of Labor. As reported the Initial Jobless claims in US increased to 339000 in the week till Feb 8 from 331000 in the week till Feb1. Economists were expecting it to remain unchanged.Initial jobless claims data is much more important than the continued unemployment claims data because it measures new and emerging unemployment.The monthly average is considered as a more accurate gauge of labor market increased by 3500 from the previous week’s reading of 333250.  

Another data on Retail sales reported by Census Bureau says that retail sales in US decreased .4% in January 2014 from the previous month which economists were expecting to increase by .3%. Core retail sales which excludes volatile items like automobile sales was unchanged last month which analysts were expecting to increase by .1%. As consumer spending accounts for 70% of the economic growth in US, Retail sales data has its own importance.

2014 doesn't seems to be a good start in terms of economic data. US dollar which was earlier trading higher on Yellen remarks went down today. USDX which gauge the performance of US dollar against it major counterparts also went down to 80.24.