Strong USD on Tuesday
The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Retail data for the US: down again?
The US will publish headline and core retail sales at 15:30 MT time on May 15.
Instruments to trade: EUR/USD, USD/JPY, USD/CHF
While the headline retail sales show the total value, the core indicator excludes sales of automobiles due to their volatility. Based on their data, we may judge the economic activity of a country and the level of consumer spending. During the previous release, both indicators fell significantly. The headline one declined by -8.7% (vs. -8% expected). The core indicator surprised traders positively, though, if we may call it "positive". The indicator fell by "just" -4.5% (vs. the forecast of -4.9%). The pandemic hit US retailers hard as well as the US dollar. The greenback fell to the red zone on the release.Will we see a different outcome this time? There is a little chance that we do, but if that happens the US dollar will be a winner. Remember the simple rules:
• if the actual levels of indicators are higher than the forecasts, the USD will rise;
• if the actual levels of indicators are worse than the forecasts, the USD will fall.
Similar
Will the USD grow with the US labor market?
The US unemployment claims are out on Thursday at 15:30 MT time.
Will the US CPI boost the USD?
The American CPI is announced on Wednesday at 15:30 MT time.
Latest news
ECB report is in focus
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Markets await Biden to unveil "trillions dollars"
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
USD came under selling pressure
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
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