Mid-Day Report: Dollar and Yen Regains Ground after Retail Sales Fell by Record Amount
Dollar and yen continues to regain grounds in early US session after poor retail sales data from US. Headline sales dropped more than expected by -2.8% yoy in Oct, worse on record and even below 2001’s 2.65% fall after terrorists attacks. Ex-auto sales also dropped more than expected by -2.2%, also the worse performance ever. Both export and import prices fell -1.9% mom and -4.7% mom in Oct, deeper than consensus. The overall forex markets remain indecisive though and will depends on the development in the stock markets.
Eurozone GDP contracted for the second quarter by -0.2% qoq in Q3, formally declaring the 15 countries area in recession. Year-over-year growth was down from 1.4% to 0.7%. Eurozone HICP is finalized at 3.2% yoy in Oct.
G20 leaders will begin a two day summit on global economic crisis today in Washington. Though, markets are expecting little result from the summit except verbal endorsement of increased stimulus to the economies of the member countries.
By ActionForex
