Hopes were high heading into today’s U.S. Retail Sales report, with analysts expecting that the primary measure of the consumers’ health would bounce back to 1.0% m/m after three consecutive declines of more than -0.5%.
U.S. retail sales rose in March for the first time since late last year as consumers stepped up purchases of automobiles and other goods, suggesting a sharp slowdown in economic growth in the first quarter was temporary.
More attention is being paid to politics than to actual market events. The U.S. labor market continues to be of great concern since an "unemployed or underemployed consumer does not consume" except for essentials such as food and energy.
The story of the day in North American markets was the renewed domination of the U.S. dollar which rallied against all the other major currencies today as a variety of factors helped the world’s reserve currency dominate.
In yesterday’s FOMC Minutes Instant Reaction piece, we used the analogy of Goldilocks and the Three Bears to describe Federal Reserve officials diverse views on whether the economy is running “too hot” or “too cold.”
The Federal Reserve could still hike interest rates in June despite weak recent U.S. data and investor skepticism, two influential officials with the central bank said on Wednesday, putting the spotlight squarely on the economy's performance in the next two months.