Dollar is generally in consolidation mode near to recent lows ahead of today's retail sales data from US. Apparently, market hesitates to push the greenback through some key near term support levels against Sterling and Swissy this week. Even though EUR/USD edged to new record high, the medium term resistance of 1.3822 is playing some effect in capping the pair's rally. Growth in headline sales is expected fall back to 0.1% Jun after a strong rise of 1.4% in May. Growth in ex-auto sales is also expected to slow from 1.3% to 0.2%. However, with a lot of details in the report, there are a lot of uncertainty on how markets will react, in particular if the actual data comes in not far off expectation. Also, considering Friday's profit taking effect, we could still see the some dollar rebound even if retail sales disappoints today.
Other data from US include import prices which is expected to slow from 0.9% to 0.7% in Jun, business inventories which is expected to slow from 0.4% to 0.3% in May and University of Michigan consumer sentiment which is expected to rise slightly from 85.3 to 86.0 in Jun.
The Japanese yen remains generally weak today as global stocks soars. Meanwhile, Kiwi rebounded sharply overnight after much stronger than expected retail sales growth of 1.2% which enforces speculations that RBNZ is not done with the current tightening cycle. But after all, the rally in Kiwi is still limited by last week's high of 0.7879.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment