US retail sales disappoints dollar bulls
City Index May 14, 2015 2:13 PM
<p>The dollar is trading above the weekly lows in early European trading following a disappointing US retail sales report yesterday afternoon. In contrast to the […]</p>
The dollar is trading above the weekly lows in early European trading following a disappointing US retail sales report yesterday afternoon. In contrast to the US labour report on Friday, the retail sales data revealed a below consensus headline but a stronger revised component. Although some analysts suggested that further upward revisions could be seen moving forward into Q2, the consensus fears a deeper slowdown in the US which will inevitably delay the timing of a rate hike by the Federal Reserve. CFTC data still suggests the EUR/USD short trade is overly crowded with a staggering $26.5 billion of dollar shorts remaining against the single currency.
The pound continues its politically-inspired rally as the jobs data revealed that unemployment continued to fall, as wage growth accelerated at its fasted pace since 2007. The rally brushed off the BoE’s inflation report that downgraded GDP projects, although these are now more in line with the market consensus .
The NZD continued to oppose market rate cut expectations as the inflation sentiment seems to defy a downturn. Retails sales for New Zealand revealed a contrasting picture to that of the US with a rise to a record 2.7% for the quarter against of 1.6%.
The data releases are very second tier today with only PPI and the jobless claims from the US.
Support 1.1285-1.1130-1.1070 | Resistance 1.1450-1.1530-1.1700
Support 118.60-118.20-117.50 | Resistance 119.60-120.30-120.85
Support 1.5580-1.5450-1.5290 | Resistance 1.5795-1.5875-1.5980
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.