USD – Will Consumers Help Retail Sales?
The USD lost ground to both the EUR and GBP on Thursday as Wall Street turned in its second consecutive day of gains. Though the positive returns on the major indexes were not huge it may have been enough to propel some international risk sentiment. The weekly Unemployment Claims were released and disappointed investors with a 462K, which was above the expectation of 452K. Today Retail Sales reports are on the calendar from the States and traders who have been staying low most of the week due to an absence of major data may be poised to strike with any surprises. Both the Core and broad Retail Sales figures are expected to be rather flat. Also the Consumer Confidence from the University of Michigan will be brought forth and the Preliminary reading is estimated to be 74.0.
The greenback has essentially traded in range this week and going into the weekend could be poised to find some volatility if investors see any room for maneuvering. Wall Street has produced consolidated trading for a while and if it should make a strong turn this could spur the markets into action. Next week will see much more fundamental data than what has transpired the past four days. Today’s Retail numbers are expecting a rather lackluster display and some analysts are pointing to the severe weather that hit key consumer regions in the States as a reason for a possibly disappointing outcome. The USD found itself under pressure yesterday as the EUR rebounded. The decision that traders will have to make today is whether the USD may continue to find some short term weakness.
"We have a considerable way to go to achieve a full recovery in our economy, many Americans are still grappling with unemployment, foreclosure and lost savings"
