Dollar Gains After Retail Sales Boost; Gold Nears New Record
| Action Insight Daily Report 7-16-24 |
Dollar Gains After Retail Sales Boost; Gold Nears New Record |
Dollar bounces higher in early US session, buoyed by stronger-than-expected retail sales data. This resilience in consumer spending comes despite the persistent high inflation and elevated interest rates. The robust retail sales figures lend support to Fed's soft landing scenario, where the economy slows down without falling into a recession. However, there are concerns that such strong consumer demand might impede the ongoing disinflation process, which is crucial for Fed to consider lowering interest rates in the future. Conversely, Loonie, is facing some pressure following weaker-than-expected inflation data, especially in core measures. Despite this, Loonie is holding up relatively well against most other currencies. The markets are likely to take some time to fully digest the implications of the latest inflation readings and their impact on BoC's rate decision next week... |
EUR/USD Mid-Day Outlook Daily Pivots: (S1) 1.0877; (P) 1.0900; (R1) 1.0916; More.... EUR/USD's retreat from 1.0921 extends lower today but stays well above 1.0805 support so far. Intraday bias remains neutral first. Some more consolidations would be seen but further rally is in favor. Firm break of 1.0915/21 will will resume whole rise from 1.0601 to 100% projection of 1.0601 to 1.0915 from 1.0665 at 1.0979. However, break of 1.0805 will turn bias back to the downside for deeper pullback. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 04:30 | JPY | Tertiary Industry Index M/M May | -0.40% | 0.20% | 1.90% | 2.20% | | 09:00 | EUR | Eurozone Trade Balance (EUR) May | 12.3B | 20.3B | 19.4B | | 09:00 | EUR | Germany ZEW Economic Sentiment Jul | 41.8 | 44.3 | 47.5 | | 09:00 | EUR | Germany ZEW Current Situation Jul | -68.9 | -73 | -73.8 | | 09:00 | EUR | Eurozone ZEW Economic Sentiment Jul | 43.7 | 50.2 | 51.3 | | 12:15 | CAD | Housing Starts Y/Y Jun | 242K | 259K | 265K | | 12:30 | CAD | CPI M/M Jun | -0.10% | 0.10% | 0.60% | | 12:30 | CAD | CPI Y/Y Jun | 2.70% | 2.90% | | 12:30 | CAD | CPI Median Y/Y Jun | 2.60% | 2.70% | 2.80% | 2.70% | | 12:30 | CAD | CPI Trimmed Y/Y Jun | 2.90% | 2.80% | 2.90% | | 12:30 | CAD | CPI Common Y/Y Jun | 2.30% | 2.40% | 2.40% | | 12:30 | USD | Retail Sales M/M Jun | 0.00% | -0.20% | 0.10% | | 12:30 | USD | Retail Sales ex Autos M/M Jun | 0.40% | 0.10% | -0.10% | | 12:30 | USD | Import Price Index M/M Jun | 0.00% | 0.20% | -0.40% | | 14:00 | USD | Business Inventories May | 0.30% | 0.30% | | 14:00 | USD | NAHB Housing Market Index Jul | 44 | 43 |
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