Home Economy Win-win for the dollar? Three scenarios, only one dollar-negative

Win-win for the dollar? Three scenarios, only one dollar-negative

5
  • Economists expect US core Retail Sales to have risen by only 0.4% in October, adverse for the dollar. 
  • Better figures would boost the greenback on expectations for higher growth.
  • A drop in consumption would trigger a dollar-positive risk-off mood.

Never underestimate the US consumer – this adage is mostly correct, but sometimes shoppers go on strike due to high prices. That is the fear for October’s Retail Sales report. As some 70% of America’s economy is around consumption, the upcoming publication is critical for the dollar. 

Consumer Sentiment has hit the lowest since 2011, at least according to the University of Michigan’s preliminary read for October, which came out at 66.8 points. It was at at the only marginally less miserable levels of 71-72 beforehand. Nevertheless, American consumers defied expectations and were buying non-stop in August and September.

The figure to watch is the Retail Sales Control Group –…

Click here for full article…www.fxstreet.com