James Knightley, chief international economist at ING, suggests that the US retail sales for May are broadly in line with expectations, but significant upward revisions give the report a positive glow.

Key Quotes

“Headline sales rose 0.5%month on month versus the 0.6% consensus prediction, but April’s figure went from -0.2%%MoM to now become +0.3%.”

“The “control group” which strips out some of the volatile components, such as autos, gasoline stations and building materials, was actually a touch above expectations, rising 0.5%MoM versus the 0.4% consensus, while April’s figure is now +0.4%MoM growth versus the 0% figure originally reported.”

“We already knew that auto unit sales surged 5.5% in May, but this has only been translated into a 0.7% increase in the value of auto sales, thereby suggesting some fairly steep price discounting last month.”

“In general, there has been some softening in the recent economic data, but we remain upbeat of the prospects for retail sales and consumer demand more broadly.”

“So while the Federal Reserve does seem to be shifting towards rate cuts, market expectations of 100bp of easing look too aggressive to us.”

“We look for 50bp of easing in 2H19.”

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD rises above 1.1200 amid some USD weakness

EUR/USD is trading above 1.1200, recovering some of the losses. Earlier, ECB officials expressed concern about global growth President Draghi speaks later. Tension is rising toward the Fed decision.

EUR/USD News

GBP/USD falls to the lowest since January

GBP/USD is trading around 1.2550, the lowest since January. Sterling has been under pressure amid growing uncertainty about Brexit and USD strength.

GBP/USD News

USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.

USD/JPY News

Gold recovers early lost ground, back above $1240 level

Gold recovered a major part of its early slide and moved to the top end of its daily trading range, above the $1340 region post-US data.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more

Majors

Cryptocurrencies

Signatures