US retail sales this afternoon - time to move on

Published date: 13/12/2019

Now that the UK general election is out of the way, the markets will take a more balanced outlook on the markets, where GBP has dominated - certainly in the last 24 hours - in recent times.   After the FOMC this week, where Fed chair Powell raised the bar for raising US interest rates again, the market will be looking for signs in the data to see whether this can extend the slightly dovish tilt perceived by some.  

Later on this afternoon, we focus on the US consumer as we get US retail sales for November, and if we see any weakness in this data, then expect to see further weakness in the greenback, which has lost ground against the EUR as well as GBP in the last 24 hours, pushing into the upper 1.1100's against the single currency. 

However, USD/JPY has been moving the other way, but much of this is down to JPY weakness as the risk-on mood seems to have taken hold again as the market raises hopes once more on a Phase One trade deal being reached between the US and China.  It has been reported that the US President has agreed to a limited trade deal to get some progress into year-end, though no response from China as yet.  

Over the weekend, we have the deadline for the next round of US tariffs on Chinese goods, so this will be the next event risk which will impact on the USD, and USD/JPY more specifically.

For now, though, we look to US spending stats due out at the 13.30 slot this afternoon.


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