The USD got roughed up by the EUR and GBP on Tuesday as risk appetite thundered back into the marketplace at least for a day. Wall Street improved as investors greeted the morning with the positive quarterly earnings from Alcoa the previous night. Last night Intel did much the same, and investors will get another chance to trade off of a good publication this morning when the equities open in the States. Trade Balance data was released yesterday and proved negative, but these numbers seldom shake the market nowadays and the outcome proved a non event. Today the U.S. will release Retail Sales figures and its results could stir the souls of market participants. An outcome of minus -0.1% is expected. There has been warning signs that consumer spending remains soft and today’s number will be an interest to all.
Earnings season will continue on Wall Street today and last night’s positive news from Intel is likely to cause good feelings. The question is how other sectors will frame their corporate accounting and news in the coming few weeks. The markets are certainly well into their summer trading session, volumes have not been gigantic, and traders seem to be in control as long term investors appear to be remaining on the fence still. Tomorrow weekly Unemployment Claims and the Empire State Manufacturing Index will be brought forth and both reports are expected to be relatively flat. Even though there has been a positive move in the equity markets it must be asked if the gains reflect a real belief that the prospects for the American economy is improving or merely short term speculation? The USD traded lower on Tuesday on what appears to be better risk sentiment, but for how long will the glass be looked upon as half full?
Written by bforex.com
