The US Commerce Department reported Friday (February 12) morning that January retail sales grew by .5 per cent, which was higher than the .3 per cent forecasted by analysts. Wal-Mart and other big department stores were seen as the major catalyst for the growth, which suggests a more conventional increase in consumer spending on retail purchases.

Currency speculators jumped on the news by investing in more dollars relative to foreign currencies including the Pound, Euro and Yen. They apparently see this news as another sign that the US economy is shoring up and the Fed is certain to raise rates in quick order.

Some analysts were quick to point out that there are no guarantees the US is out of the woods. The global marketplace is still struggling, which ultimately impacts the flow of income back into US companies that operate globally.

Others maintain that with the unemployment rate still near 10 per cent, Americans are not going to be able to continue to spend, something evidenced by the weak February consumer confidence report. Harsh winter storms across the Midwest and northeast have made it difficult for customers to get out this month.

Many consumers were likely taking advantage of some post holiday housekeeping and revenue-generating sales promotions offered by many retailers looking to jumpstart the new year.

The dollar just moved past the 90 yen mark and is currently trading at 90.01 yen. The Euro fell as low as $1.3532 earlier in the day Friday before climbing back over the $1.36 mark. This is the low point for the Euro since mid-May of last year.

The British Pound fell as low as $1.5583 before it moved back toward $1.57. Similar to the Euro, the Pound has not been this low since it broke from a strong upward trend and moved into a long-running horizontal trading range beginning in mid-May of 2009.

Oil prices fell sharply Friday after four days of gains. Oil is currently down $1.77 on the New York Mercantile Exchange for a price of $73.50. Along with the stronger dollar, news that China is going to take measures to reduce its recent boom on oil demand has weakened interest in oil speculation.

Gold prices were initially down after the retail news, but have since moved back toward the $1,100 level. The current spot rate for gold is $1091.90.