Dollar to hold onto recent gains barring a collapse in Retail Sales – ING

FXStreet Insights Team FXStreet

The Dollar direction today will be determined by the US consumer. Economists at ING analyze Greenback’s outlook ahead of January Retail Sales data.

DXY to stay bid in a 104.50-105.00 range

We and the market are looking for some softening in the January retail sales figures today, but the consensus of a 0.2% month-on-month increase in the retail sales control group (from +0.8% MoM in December) hardly signals cause for alarm.

Barring a huge downside surprise in retail sales or a surge in initial jobless claims (to support the anecdotal news of rising US layoffs) we do not think the Dollar has to come too much lower. Subdued cross-market volatility is keeping interest in the carry trade alive and also benefitting the high-yielding Dollar.

We favour DXY staying bid in a 104.50-105.00 range.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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