KBND - Strong U.S. Retail Sales May Help Extend The Dollar's Recovery
2024-03-14 07:05:00 ET
Summary
- While the dollar has traded firmer in the first half of this week, given the 25 bp jump in the US two-year yield, its performance is somewhat disappointing.
- Most emerging market currencies are softer, but for the second consecutive session, the Hungarian forint is recovering and leading the advancers.
- Equity markets are firm, with the notable exception of China and Hong Kong.
- Today, OPEC+ warned that the oil markets may face a supply deficit this year.
Overview
We have put emphasis on today's US retail sales report. A recovery from the weather-induced weakness in January should underscore the resilience of US demand after another 200k jobs were created and personal income jumped 1%. While the dollar has traded firmer in the first half of this week, given the 25 bp jump in the US two-year yield ( US2Y ), its performance is somewhat disappointing. It is narrowly mixed in the European morning against the G10 currencies. The dollar bloc, sterling- and the Norwegian krone enjoy a slightly firmer bias. The euro, yen, and Swiss franc are nursing minor losses. Most emerging market currencies are softer, but for the second consecutive session, the Hungarian forint is recovering and leading the advancers....
Strong U.S. Retail Sales May Help Extend The Dollar's Recovery