Weak US retail sales might boost stocks

Expert market comment made by Chief Market Analyst Alex Kuptsikevich of the FxPro Analyst Team: Weak US retail sales might boost stocks
FxPro | 136 dias atrás

Weak US retail sales might boost stocks

US retail sales rose by only 0.2% in February after a 1.2% drop a month earlier (revised from -0.9%). The values came out weaker than expected, further strengthening the arguments of those pointing to recession risks in the US economy.

This news puts additional pressure on the dollar, which has been attempting to consolidate after a 6% decline from the peak for a little over a week. Rising speculation about an imminent Fed rate cut is also weighing against the dollar.

However, we would also not want to lose sight of the broader picture. US retail sales (adjusted for seasonal factors but not inflation) are increasing by 3.2% y/y against the overall inflation rate of 2.8%, which means we see a real increase in activity, albeit not a high one.

For equity markets, the bad news on the economy and bringing the key rate cut closer could be a positive on which to build the foundation for the next market rally.

By the FxPro Analyst Team

Regulamento: FCA (UK), SCB (The Bahamas)
read more
Dollar rally pauses as Fed signals patience once again 

Dollar rally pauses as Fed signals patience once again 

Fed keeps rates unchanged, but leaves door open to future rate cuts; Strong earnings lift equities, reversing the post-FOMC dip; Gold rebounds, oil struggles to hold $70, copper futures plunge; BoJ keeps its powder dry, yen gets a small lift;
XM Group | 9h 52min atrás