Back
13 Mar 2013
Forex Flash: EUR/USD looks to US retail sales – Danske Bank
The single currency remains flatlined in the vicinity of the key resistance at 1.3000 on Wednesday, ahead of the US retail sales for the month of February. Prior surveys place a monthly expansion of 0.5%, while same result is expected from the Core reading.
Flemming Nielsen, Senior Analyst at Danske Bank, remarked that sales could have two opposite effects on the euro.
“Strong US numbers are overall expected to support risk appetite, which would normally tend to push EUR/USD higher. However, with the long streak of improving US data, the market has increasingly turned its focus on the timing of a Fed ‘exit’. Hence, strong US data might fuel further expectations that the Fed will start to look at this and thus a high probability that strong US data would lead to a stronger dollar going forward”, Nielsen concluded.
Flemming Nielsen, Senior Analyst at Danske Bank, remarked that sales could have two opposite effects on the euro.
“Strong US numbers are overall expected to support risk appetite, which would normally tend to push EUR/USD higher. However, with the long streak of improving US data, the market has increasingly turned its focus on the timing of a Fed ‘exit’. Hence, strong US data might fuel further expectations that the Fed will start to look at this and thus a high probability that strong US data would lead to a stronger dollar going forward”, Nielsen concluded.