Dollar suffers from the bearish Retail Sales, its outlook is now in doubt

On Friday investors’ focus had been on the US Retail Sales report and secretly most of them hoped for a surprise that would help the US currency to recover against its rivals. However we had warned our audience that the bias was bearish and the most likely outcome for the consumer spending report would be a lower reading confirming the slowdown in the sector.

Indeed the Retail Sales figures came out exactly as expected with the report showing a lower reading for consumer spending during the last month. The stagnating wages in the US was one reason behind the bearish printing of the report but at the same time the volatile conditions on a global scale might have played their parts on keeping consumers cautious.

The result of the report was a decline for the US Dollar against most of its peers, apart for the British Pound that continued its bearish course. The question that this fresh report poses though is whether this would affect Fed’s plans for further rate hikes with the first quarter or half of the year. The recent string of data coming out of the US hasn’t been too exciting and that might force the US policymakers to take it easier with normalizing policy in the next months.

During the Asian session though the US Dollar has been recovering against its rivals with the Euro dropping below the 1.0900 a few hours ago after the 1.0980 highs on Friday and the Cable is trade just shy of its fresh lows around the 1.4260 area. There is a total lack of any important report pending for release today and with the US markets on holiday we should expect limited volatility and price action at the beginning of the week.

Economic Calendar

Share: Analysis feed

Past performance is not indicative of future results. Trading forex, CFDs and equites carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. The information provided by InvestingBetter.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. InvestingBetter.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. InvestingBetter.com and/or its owners will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on InvestingBetter.com. InvestingBetter.com does not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.