The latest retail sales data has shown a larger than expected drop in month-on-month terms with a decline of 1.5%. The data for December comes in sharply below the 1.1% increase seen previously and suggests that the final month of 2017 failed to offer as big of a festive bump as was hoped. Individual retailers have already reported mixed results over the key Christmas period with M&S and Debenhams disappointing whilst supermarkets such as Tesco, Aldi and Lidl all excelled.
The Pound has fallen lower on the news with the FX rate against the US dollar pulling back form it's post-Brexit vote highs seen on Wednesday around 1.3940. The pair has dropped back close to the 1.39 handle following the release and given the large gains seen over the past week there could be further downside ahead.
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AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
Australia CPI Preview: Inflation set to remain above target as hopes of early interest-rate cuts fade
An Australian inflation update takes the spotlight this week ahead of critical United States macroeconomic data. The Australian Bureau of Statistics will release two different inflation gauges on Wednesday.