UK Retail Sales Jump, British Pound Steady

China to gain more airtime this week The ailing housing sector and the bond rally in focus RBA remains hawkish, but consumer appetite is critical Aussie benefits from dollar weakness Market’s focus could turn to China this week The post non-farm payrolls week tends to be a quiet one as the market digests the latest […]

EUR/USD: Weak Inflation = Weak USD The American currency suffered two significant blows last week. Although these were not knockdowns, let alone knockouts, these minor shocks pushed the DXY Dollar Index down from 105.26 to 104.20 points, and EUR/USD up from 1.0766 to 1.0895. The first blow came on Tuesday, 14 May, from Federal Reserve […]

Summary The December CPI report should indicate that the underlying trend in inflation is not re-accelerating, but it is unlikely to allay the FOMC’s increased concerns that inflation has become stuck uncomfortably above its target. We look for the headline CPI to rise 0.4% on the back of a strong gain in energy prices, which […]