USD – Stability Returns To The Market

The USD essentially traded in range on Friday as the currencies moved in a rather tentative manner. The U.S. released its Retail Sales statistics and the outcome was negative. A result of minus -1.1 was produced by the Core Retail Sales figures and the broad numbers were less than impressive too. The estimate for the Core data was a gain of 0.1%. The Prelim Consumer Sentiment from the University of Michigan turned in a 75.5 reading, which was better than the anticipated 74.7. Investors who were taken aback by the weak retail numbers were given enough fortitude by the consumer statistics to keep Wall Street steady. However, the less than encouraging news will leave both sides of the coin in the equities markets hotly debated. There will be no major economic releases from the U.S. today and the lack of publications will allow for plenty of interpretations to be translated into the markets.

The USD has traded weaker against the EUR and GBP the past few sessions, but still finds itself within the stronger parts of its near term ranges. Wall Street turned in a rather roller coaster type performance last week while it suffered swift declines followed by rapid gains. Going into this week investors could feel rather perplexed looking at the financial landscape as they try to decipher the terrain and decide on what the long term prospects are for the major economies. The Sovereign Debt concerns emanating from Europe have not gone away though the fear seems to have subsided for the time being. However, what has taken place is that concerns have arisen and found voice regarding the possibility of double dip recessions finding the global economic powers. The U.S. continues to be under a cloud from a poor employment environment and has left many analysts asking how and where job creation from the private sector is going to develop. Important data this week will come from the Empire State Manufacturing Index tomorrow, Building Permits on Wednesday, and the weekly Unemployment Claims on Thursday. Last week presented traders with an opportunity to test ranges as some stability made its way into the markets, but investors cannot be faulted for considering a cautious approach when entering today’s fray.

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