After Poor US Retail Sales, the Dollar Stays Weak As Futures Pair Gains
Login

After Poor US Retail Sales, the Dollar Stays Weak As Futures Pair Gains

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

After some disappointing retail sales numbers, the dollar is under selling pressure. US futures have also given up some of their earlier gains and seem vulnerable. The yen is the second weakest currency after the dollar, although commodity currencies, along with the Euro, are the strongest. The question now is whether the Dollar’s fall can gain enough traction to make new lows before the week’s end.

Despite strong factory-gate inflation data and a positive employment report of the previous session, the US dollar is falling. With 473k initial claims filed last week, unemployment claims reached a new pandemic low. Meanwhile, producer price inflation increased by 0.6 percent in March, which was double the planned pace. PPI increased by 6.2 percent on an annual basis, the largest increase since the data began being monitored in 2010.

Inflation concerns seem to have subsided as labor market data has improved. Concerns about labor shortages as a result of the weak non-farm payroll have exacerbated inflation concerns this week, putting upward pressure on salaries. Signs that the labor market recovery is on track are boosting market sentiment and calming inflation fears. The greenback is falling as a result of this, as well as the Fed’s dovish hymn sheet being sung loudly.


In April, Retail Sales in the United States Stays Flat

Retail sales remained unchanged in April, according to data published on Friday. While the upward adjustment to the March figures softens the blow somewhat, the result fell short of the consensus estimate of a moderate gain.

In April, US retail sales were flat at USD 619.9 billion, well below the 0.5 percent increase expected by economists. Ex-auto sales fell -0.8 percent, mom, falling short of expectations of a 0.9 percent mom increase. Sales of non-gasoline products increased by 0.1 percent. Sales of non-auto, non-gasoline products fell -0.8 percent, mom.

The Federal Reserve’s “transitory” inflation warning, according to analysts, has credibility. They believe the chance of a more sudden rise in yields is greater, but the likelihood remains low for the time being. Their outlook for the dollar remains bearish but less so than previously.

Meanwhile, with the US dollar as the global reserve currency, the US Treasury market remains a crucial market for international investors, and with hedging costs still so low thanks to the well-anchored short-end of the US curve, the yield pick-up net of hedge is becoming increasingly appealing.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News