Jump to content

US Dollar Upside Maintained Amid Retail Sales Beat


MongiIG

Recommended Posts

US Dollar Analysis & News:

  • Firm Retail Sales to Maintain USD Upside vs Euro.
  • US Retail Sales Beat Adds to Slew of Encouraging US Data.

US Dollar Upside Maintained Amid Retail Sales Beat

FIRM RETAIL SALES TO MAINTAIN USD UPSIDE VS EURO

Another firm set of retail sales figures with a beat across the board. Meanwhile, revisions to the prior month’s report were slightly mixed, however, US retail sales nonetheless remain robust. Most notably, the retail sales control group figure rose 1.6% vs expectations for a 0.9% increase, which is important as this is used in several GDP trackers. Therefore, we could begin to see US GDP forecasts slightly upgraded. Once again, this will add to the case for Fed hawks to perhaps urge the committee to speed up QE tapering or if not speed up tapering, possibly to provide a hawkish pivot sooner rather than later.

US RETAIL SALES BEAT ADDS TO SLEW OF ENCOURAGING US DATA

US Dollar Upside Maintained Amid Retail Sales Beat

Source: Refinitiv

Market Reaction: Price action in the USD has been somewhat muted following the release, with the exception of USD/JPY, which popped higher, alongside US treasury yields. At the same time, US equities have had a rather choppy reaction, whereby the initial move higher has been faded. Going forward, with the data being better than expected, this is likely to keep the pressure on EUR/USD as the Euro struggles with the recent surge in Covid cases. Taking a look at the chart, topside resistance sits at 95.71 and 96.00.

USD CHART: DAILY TIME FRAME

US Dollar Upside Maintained Amid Retail Sales Beat

Source: Refinitiv

By Justin McQueen, Strategist, 16th November 2021. DailyFX

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      17,237
    • Total Posts
      81,230
    • Total Members
      65,833
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    DanGD
    Joined 20/01/22 11:46
  • Posts

    • Netflix Q4 earnings: it’s all about the outlook Trading all-sessions on the IG platform, Netflix earnings may fall into the shadows compared to the outlook. Will the progress made around Covid mean that people start to surrender subscriptions? https://www.ig.com/uk/market-insight-articles/netflix-q4-earnings--its-all-about-the-outlook-220120  
    • Charting the Markets: 20 January The Nasdaq stabilises near psychological support - we also look at Wall Street, China A50 and Hang Seng Index. In FX we look at the DXY, GBP/USD and USD/JPY. And gold looks for gains after surge, while oil prices consolidate. https://www.ig.com/uk/market-insight-articles/charting-the-markets--20-january-220120   This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.    
    • Click on the link below for Free Trading Guides & Forecasts: https://www.dailyfx.com/free-trading-... 26th Jan 2022, 3PM GMT. Set a reminder!
×
×
  • Create New...