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US Data Starting Its Own Trend?

Stronger data in the US persists; not a trend yet, but certainly something to keep policy makers happy in this climate of Euro unpredictability. US retail sales are starting the quarter surprisingly stronger than anyone would have estimated back in August, at the depth of the recession fears. We are also witnessing slower inflation in the pipeline in both Canada and the US.

The Fed this month renewed their pledge to hold the benchmark interest rate near zero, at least through the middle of 2013, so long as joblessness stays high and the inflation outlook is “subdued.” The CAD, which is presently outperforming other growth and interest rate sensitive currencies due to its proximity to its largest trading partner, the US, has managed to pare its weekly drop. This has been achieved on the back of its own inflation report reducing speculation that the Bank of Canada will cut borrowing costs to support the economy.

Below are some other highlights of the week:


AMERICAS

 

Other Link:
EUROPE Week in FX [1]
Aussie dollar on one knee with Yen in demand [2]
ECB or the EUR to Crack? [3]

 

WEEK AHEAD

  • USD starts their shortened trading week with existing home sales
  • MPC minutes and inflation expectation come from GBP, NZD and USD
  • Another quite week for CAD with only Retail Sales
  • Growth and durable goods are reported from GBP and USD
  • CNY delivers flash manufacturing PMI
  • Germany dominates the business climate reports

 

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Dean Popplewell

Dean Popplewell [8]

Vice-President of Market Analysis at MarketPulse [9]
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

Latest posts by Dean Popplewell (see all [8])