US Retail Sales Preview: what to expect of USD/JPY
|The US Census Bureau will release later today the results from Retail Sales, with consensus expecting headline sales to have expanded at a monthly 0.7% during December, extending November’s 0.1% gain.
In addition, Producer Prices are also due and market expectations point to an annualized gain of 1.6%, adding to the revitalized up trend since the summer of 2015.
In view of strategists at TD Securities, “We see scope for a strong December retail sales report following the rather downbeat November release which partly reflected some payback from the prior two months of solid gains… it will be telling whether the marked post-election pickup in consumer sentiment surveys along with holiday shopping patterns translate more pronounced spending in December”.
In the FX space, a solid print today should bring in some respite to the beleaguered greenback, lifting at the same time US yields and thus helping USD/JPY to extend further its rebound from recent lows in sub-114.00 levels. The interim hurdle remains at today’s high in the vicinity of 115.20, while a resumption of the decline should see the initial support emerging at yesterday’s low in the 113.75/70 band.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.