US dollar strength dominates post Fed
US initial jobless claims in line, but PMI weaker
Quiet data calendar and quiet markets into the weekend
Bank of Japan hold policy steady for now
Following the past few days of volatility, Thursday's markets actually were a relative example of tranquillity. The same trends that have been governing markets for the past few weeks continued with little impetous to stymie their ascent.
The market is sat there waiting for yet another excuse to take the greenback to greater heights. Market data is still a lot stronger than the remainder of the G10 and with it we have an industry that is simply wanting the FOMC to signal further that rate hikes are obvious and forthcoming within the US economy.
UK retail sales were the strongest in a decade on a yearly basis and shows that the UK consumer was completely taken in by the 'Black Friday ' sales tactics of the major retailers. We have longer term doubts about the benefits of such sales. While the near term deflation is good for consumers there is little evidence that retailers are seeing higher profits. It also signals that purchasing intent is being dragged forward from typical sales periods and that the average consumer will become minded to not pay full price for goods into the Christmas period. For now, a 6.4% increase on the year is being seen as a result.
Today's markets are relatively quiet but we would recommend watching for the stronger USD through the day into the weekend as a result of low liquidity.
Have a great weekend.
Disclaimer: The comments put forward by World First are only our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as of the date of the briefing and are subject to change without notice. Any rates given are “interbank” ie for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts.
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