Archive for June, 2008
Fed Rate Hike Ready or Not?
On Friday, June 7th the US unemployment rate spiked from 5.1 to 5.5 percent - its biggest rise in 26 years. The currency market reacted predictably pushing EURUSD to within 2 cents of its all time high on the assumption that Fed would not dare tighten rates in such a…
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US Retail Sales Rise The Most In 6 Months On Spending At Gas Stations
US Advance Retail Sales rose by the most in 6 months during May, as the index jumped 1.0 percent from the month prior. Excluding autos, this figure was even more optimistic as the index surged 1.2 percent. A breakdown of the index shows broad-based gains, but the most notable one…
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London Session Recap
The Greenback recovered smartly overnight, catching a further boost in London trading as expectations for a strong retail sales report out of the US (8:30ET) continue to fuel the push higher. The market expects May total retail sales to come in at 0.5% and 0.7% excluding the moribund auto sales…
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European Market Update
ECB Publishes Jun. Monthly Report: ECB is in the state of heightened alertness on inflation risks; echoes Trichet’s Jun 5th press conference remarks.II ECB to act in firm and timely manner on 2nd round effects as service sector inflationary pressures increase. II Notes high uncertainty about economic growth outlook and…
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Dollar Continues To Strengthen As Traders Bet On Fed
Despite much better than expected results from the Industrial Production report the euro continued to lose ground to the dollar for most of Asian and European sessions trading as low as 1.5390 before bargain hunting and strong economic data steadied the unit. Industrial Production in EZ rose to 0.9% from…
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Australian Dollar Retreat
The Australian dollar will remain vulnerable to a further correction weaker despite the continuation of yield support. The Australian dollar was unable to regain the 0.95 level against the US currency on Wednesday and had a significantly weaker tone on Thursday.
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Sphere: Related Content
Today’s Key Points
Several key US data are on the agenda today with retail sales (14.30 CET) being the most important one as it will give a first indication of the effect of the tax cuts. Consensus is for a rise of 0.7% in retail sales ex autos. We see a slight downside…
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Dollar Rises On Speculation That Retail Sales Gained
The Euro rose on the early trading against the Dollar and the Yen after the ECB council member Erkki Liikanen stated inflation expectations are raising and the central bank is in a state of alert. The Euro traded at 1.5481 against the Dollar and at 166.79 against the Yen at…
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US Retail Sales
Retail sales are projected to have grown 0.5% from April when they fell 0.2% while excluding autos sales are expected to continue strong rising 0.7%in May after 0.5 percent the previous month. Tax rebate checks were handed out to the public with the beginning of May that had supported spending…
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Dollar Retreats Slightly On Equity Weakness, But Rebounds In Overnight Trading
The dollar fell on some modest profit taking yesterday, following a steep rally. However, overnight the Greenback fought back, despite ongoing weakness in global equities. It seems markets are afraid to be dollar short ahead of the G-8 weekend, following dollar supportive talk from US authorities. Irish Referendum on EU…
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