The USD found a slew of backers as the week ended on risk adverse trading. Investors taking a defensive posture continued to pick up steam as the weekend approached due to rather lackluster Retail Sales. Both the Core and broad figures for the Retail Sales missed their prospective marks slightly and this continued to cast a shadow over Wall Street which saw the major indexes finish off meekly. The USD picked up considerable ground against both the EUR and GBP last week essentially slashing much of the gains that the Sterling and the Single Currency had made in recent weeks. Today three interesting reports will come from the States that could have an impact on sentiment, the TIC Long Term Purchases, Mortgage Delinquencies, and the Empire State Manufacturing Index.
Well into the dog days of summer and a marketplace that had been controlled by traders as investors mostly stood on the sidelines, the currencies and international bourses have abruptly become volatile once again on fear surrounding the gnawing prospect that the American economy could be slipping back into recession. The possibility of a knock on effect for the major international economies has been enough to send various bourses reeling and collectively reign in the EUR and GBP. The U.S. will be releasing plenty of housing sector data this week and investors will pay close attention, tomorrow Building Permits and Housing Starts statistics will be brought forth. This will lead into Thursday when the weekly Unemployment Claims will have to be dealt with again. The FOMC Statement last week provided a stark warning in the minds of most investors and this week’s data another could provide a volatile mix.
Written by bforex.com
