USD: Data focus on retail sales and ISM – TD Securities

💡 DMK Insight

Strong February US Retail Sales and rising ISM Manufacturing are bullish for the Dollar right now. For traders, this data could signal a potential strengthening of the Dollar against major pairs, especially if the trend continues. If retail sales are robust, it suggests consumer confidence, which often leads to increased spending and economic growth. The ISM Manufacturing index rising for a third consecutive month indicates that manufacturing activity is picking up, further supporting the economic outlook. Watch for the Dollar Index to test key resistance levels; a break above recent highs could trigger further buying from institutions. On the flip side, if these indicators disappoint in future releases, we could see a swift reversal, so keep an eye on upcoming economic reports. In the immediate term, monitor the Dollar’s performance against the Euro and Yen, as these pairs are particularly sensitive to US economic data. A strong close this week could set the stage for a bullish Dollar trend heading into next month.