Will Retail Sales Overshadow Stimulus Package?
February 11, 2009 by admin · Leave a Comment
After selling off aggressively on Wednesday, currencies and equities have staged an unconvincing relief rally. Weakness was the theme for most of the day until the news broke that the House and Senate reached a deal on the economic stimulus bill. This week, politics is impacting the currency market far more than economics, but that could change with tomorrow’s retail sales report. If the contraction in consumer spending is deeper than the market’s 0.7 percent forecast, we could see risk aversion resume, driving the US dollar higher. Jobless claims are also due for release and they are expected to top 600k for the second week in a row.
