A weaker-than-expected retail sales report took the steam out of the dollar on Wednesday despite an encouraging start to the so-called “earnings week” rally. The euro managed to climb above $1.27 to $1.2714 as the dollar fell against most major currencies.
The message coming out of the US this morning suggests that the US economy is still on the path to recovery, but at a slower pace than previously expected. Businesses are starting to spend again, but consumers remain cautious and this will likely slow the rate of recovery in the US.
