Today's Highlights
Sterling bounces on retail sales data
US retail sales likely to impress
FX Market Overview
UK retail sales surged by an annualised 3.2% in March to deliver the strongest data since April 2014. That report from the British Retail Consortium helped the Pound to bounce from the falls of the previous week. If this morning's inflation data offers anything on the plus side of 0%, Sterling has scope to make further gains. We will also get input and output prices which are early signs of inflationary pressure, so that too could be influential.
From the Euro's perspective, we get industrial production figures and not a lot else. That is unlikely to trouble the scorers because traders will be focussed on tomorrow's ECB interest rate decision and press conference.
This afternoon brings US retail sales. These are likely to chime with the UK data and further growth is forecast. Anything below 1.0% annualised growth will take the shine off the sparkly US Dollar but is unlikely to cause a full on decline. We will also get US producer price data though and that is forecast to be quite poor. That could well cause some decline in the USD, so be careful if you are a USD seller.
That is your lot though. It is a day of little data but it could all be influential. Aside from the financial markets, the election is bumbling on. I love the fact that everyone seems capable of spending more without raising taxes whilst electioneering, they can all spend the same revenue a dozen times over and we all believe it don't we!
Quote
"Politicians are wonderful people as long as they stay away from things they don't understand, such as working for a living."
P. J. O'Rourke
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