• About Us
  • Authors
  • Currency Charts
  • Live Exchange Rates
  • Contact Us

Exchange Rate Forecast

Exchange rate forecasts and foreign currency news

  • British Sterling
  • Euro
  • US Dollar
  • Australian Dollar
  • Canadian Dollar
  • Brexit News
You are here: Home / US Dollar / Poor US Retail Sales Cause Concern

Poor US Retail Sales Cause Concern

August 12, 2016 by Ben Fletcher

Poor US Retail Sales Cause Concern

US showing signs of contraction

The US this afternoon released contracting data that was expected to show a small decrease in activity; however the expected figures and what was released are significantly different. Furthermore the Producer Price Index which indicates the change in the costs faced by producers was also down.

These statistics indicate the movements for the inflation levels and contractions suggest that the country is not moving forwards.

Strong job data may be short lived

USD weakeningThe US has released positive jobs data this week which and the momentum created from that data may have been short lived. The US Federal Reserve is currently sat on the fence with regards to increasing interest rates in the US. There has previously been talk of 4 interest rate hikes since the end of 2015 and so far we have seen 1.

Janet Yellen who is the Chairlady for the Fed has been keen to see unemployment decrease before considering further movements.

The recent positive job reports would have certainly got investors excited knowing Yellen is focusing on the employment level. However Yellen has always been one to stutter on a decision if all the factors are not perfect and poor Retails Sales will certainly be in her mind.
The US election is only just around the corner and it’s rare that a central bank will act before there is market changing factors to consider. Especially as Trump and Clinton have both revealed very different economic policies.

In my opinion in the next few months I believe the GBP/USD rate could move back into the mid 1.30’s. If it looks plausible for a Trump victory and he is in the running at the final decision then I have no doubt of major volatility that could work against the US Dollar. However in the short term rates will likely remain 1.30 bound with more concerns over the UK’s housing prices.

Filed Under: US Dollar Tagged With: global economic slowdown, US interest rate

The information on this website is provided for information purposes only. It does not constitute advice to any person on any matter. Every reasonable effort is made to ensure that the information is accurate and complete but we assume no responsibility for and offer no warranty with regard to the same.

Recent Posts

  • Sterling finds support but unlikely to make any significant impact in the coming days May 9, 2018
  • US Dollar hits 5 month high against Sterling May 2, 2018
  • Sterling exchange rates at the mercy of political developments May 1, 2018
  • Pound weakens as political uncertainty once again raises its head May 1, 2018
  • Will Mario Draghi’s speech impact GBP/EUR? April 26, 2018

Live Exchange Rates

Archives




Copyright © 2021 — Currency.co.uk • All rights reserved. • Exchange Rate Forecasts • Privacy Policy •

We use cookies to ensure that we give you the best experience on our website. By using this site you agree to receiving cookies.I agreeRead Privacy Policy