FX Brief: US retail sales eyed

A summary of news and snapshot of moves ahead of the US session.

  • Another day, another sell-off for the pound. The beleaguered currency just can’t catch a break with Brexit uncertainty continuing to overshadow any positive news, for example, this morning’s stronger wages data. The dollar rose ahead of US retail sales, industrial production and speeches from a couple of Fed officials including Chair Jay Powell.
  • Stocks remain supported – for now – as earnings come in thick and fast. Yesterday Citigroup kicked off bank earnings, reporting a mixed set of results. Today saw JPMorgan beat on both fronts with an EPS of $2.82 vs. $2.50 expected on revenue of $29.57 billion vs. $28.64bn expected. Goldman Sachs’ EPS of $5.81 easily beat $4.89 expected and revenues beat at $9.46 billion vs. 8.8 billion expected.  Crude oil was probing resistance ahead of inventories data later
  • On the data front, it has been a mixed day so far. New Zealand CPI met expectations with a quartet +0.6% print. German ZEW missed at -24.5 when -22.1 was expected. In the UK wages beat but jobless claims missed: Average Weekly Earnings +3.4% in the three months to May vs. 3.1% expected and 3.2% last (revised); Earnings excluding bonuses +3.6% vs. 3.5% expected and 3.4% last, and Claimant Count Change came in at +38K vs. +19K eyed. Here is what is coming up next:


Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.