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Monday, August 15, 2016

US Consumer Comes Under the Microscope

 Unknown     9:28 AM     Forex     No comments   

One day after the three major indexes closed at highs, futures point to a relatively flat opening on Wall Street as attention focuses on the US consumer ahead of retail sales figures and feeling.

It has been a quiet week so far, but we finally had an influx of data from China and Europe and there is still more to come from the US .. Data from China overnight covering retail sales, investment in fixed assets and industrial production disappointed in all areas, below expectations and raising concerns about slowing growth. However, markets across Asia ended the week on a positive note as the weakness in the data simply fueled speculation that policy makers will jump to the rescue again with further stimulus measures.

EUR / USD - The euro listless after German GDP meets expectations

This feeling did not spread to Europe, where despite rates hover around yesterday's closing levels had not cowered in the GDP data of the euro area. The German economy expanded at a much faster than expected pace in the second quarter, recording an annual growth of 3.1%, more than double the consensus forecast. This more than offset the disappointing numbers from Italy, which continues to deal with a banking crisis is a major drag on the economy. The euro area as a whole grew in line with market expectations largely outside shrunk.

AUD / USD - Australian dollar holding key model Before Retails US and CPI

The American consumer will be under the spotlight now, with data retail sales due out July before the opening followed by UoM consumer sentiment reading shortly thereafter. The consumer is of enormous importance to the US economy so this data is always analyzed more than most others. It's been a couple of good months for the consumer and is expected to have expanded in June, with sales seen rising 0.4%. If sentiment rises to 91.5 in August, as expected, this would suggest that the boost to consumer spending is not likely to ease off in the coming months. This is something special attention to the Fed also lends, up this year remains largely cards, especially as the labor market continues to perform well.

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