The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Greenback goes down, as American retail sales are downbeat
On Monday, the evergreen buck slipped due to the fact that US retail sales data for September missed analysts’ hopes, and as benchmark American Treasury yields stabilized after the previous week reaching their highest value for seven years.
In September, American retail sales headed north because a rebound in car purchases was compensated by the greatest drop in spending at restaurants as well as bars for almost two years.
As a matter of fact, retail sales headed north by up to 0.1% in the month. Financial experts interviewed by Reuters had foreseen a 0.6% rally.
Higher 10-year Treasury gains that rallied shot to 3.26% on Tuesday backed the evergreen buck the previous week. With gains having rebounded to 3.15%, market participants are seeking fresh impetus for US dollar buying.
On Monday, safe haven currencies, including the Japanese yen as well as the Swiss franc managed to head north due to the fact that European equities dived to 22-month minimums, with soaring tensions between Western powers as well as Saudi Arabia contributing to a wild cocktail of fears that affected global equities the previous week.
Saudi Arabia has been pressured since a well-known Saudi reporter a critic of Riyadh and also an American resident, d Jamal Khashoggi suddenlyi disappeared on October 2 having visited the Saudi consulate in Istanbul.
On Monday, the Bavarian sister party of Chancellor Angela Merkel also told that it would support political stability in Berlin having faced big losses in a regional election that their far-right opponents labeled as "an earthquake," which would rock the coalition cabinet.
As some financial analysts pointed out they don’t think that the German election outcome appears to be a big political risk, although it means that political risks in the European Union aren’t fading away.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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