US Retail Sales and PPI On Tap - Today 12:30 GMT.
The greenback’s weakness has continued to be the focal point of market speculation. Trading today within a fraction of its all time low versus the Euro, there is much anticipation awaiting Fed Chairman Bernanke’s speech today. Amidst slowing retail sales over the last month and strengthened rumors of US interest rate cuts, it will be intriguing to see if the dollar continues its downward trend.
The US Retail sales which is due to be released at 12:30 GMT today is expected to slow down a bit to around 0.2%. Reports of a drop in sales amongst leading car manufacturers as well as major shopping brands will further strengthen the notion that the release will indeed be inline with negative expectations.
The US Trade Balance was released yesterday at -57.6B, showing that the US deficit has reduced a bit; this should have caused a slight positive reaction for the USD, but instead initiated quite a violent and volatile trading session for the EUR/USD.
The US PPI is due today at 12:30 GMT and is expected to rise to 0.5% after a previous release of negative -1.4%. The Core PPI numbers are expected to remain unchanged at 0.2%.
Dollar movement during the Asian session showed that the greenback was slowly climbing back to relatively stable position. Feds Chairman Bernanke is speaking today in Dallas, and his speech will most likely add volatility to the market. Known for dropping hints throughout his speeches, you can expect to see a lot of short term movement with the dollar.
Several events on the economic calendar today will have an impact on the struggling greenback. Due to the uncertainty of today’s events, traders will probably continue to see the greenback weaken.
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