Forex analytics and overview

Soft German Retail Sales Can’t Stop the Euro

2022.12.02 19:41

[ad_1]

MarketPulse

The euro has climbed to its highest level since June 29, as the US dollar continues to struggle. In the North American session, is trading at 1.0496, up 0.85%.

German retail sales slide

German consumers are being squeezed by the double-whammy of rising interest rates and double-digit inflation, and the October report shows that consumer spending was sharply lower. Retail sales dropped 2.8% YoY, versus 1.2% in September and a consensus of -0.6%. On an annualized basis, retail sales plunged 5.0%, much worse than the September read of -0.9% and the consensus of -2.8%.

The soft retail sales report couldn’t dampen the shine on the euro, which has climbed sharply as the US dollar can’t find its footing. The dollar found itself in full retreat after Fed Chair Jerome Powell’s speech on Wednesday. Powell’s comments were balanced and didn’t stray from the steady stream of Fedspeak we’ve been hearing for weeks, but investors still treated the speech as dovish, sending equity markets higher and the US dollar lower. The markets were delighted that Powell essentially confirmed that the Fed would ease policy as soon as the December meeting. After four straight rate increases of 75 basis points, the Fed is poised to deliver a milder 50-bp hike, with perhaps smaller hikes in the new year.

Powell said that smaller rate increases were less important than the question of high to hike and for how long. Powell added that the direction of inflation remains “highly uncertain”, and that more evidence was needed to demonstrate that inflation had peaked. As well, he said that rates will likely rise “somewhat higher” than the September forecast. That certainly sounds like a hawkish stance, but the markets chose to focus on Powell’s broad hint that the Fed would likely begin lowering rates as soon as next week. The Fed may not consider that a dovish pivot, but the fact remains that Powell’s comments have renewed optimism, sending stocks higher and the US dollar lower.

EUR/USD Daily Chart

EUR/USD Technical

  • EUR/USD is testing resistance at 1.0490. Above, there is resistance at 1.0583
  • There is support at 1.03537 and 1.0264

Original Post

[ad_2]

Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 80,213.49 2.80%
ethereum
Ethereum (ETH) $ 1,838.47 2.26%
tether
Tether (USDT) $ 0.999941 0.01%
xrp
XRP (XRP) $ 2.24 0.60%
bnb
BNB (BNB) $ 576.15 3.07%
solana
Solana (SOL) $ 121.74 2.98%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.701398 3.17%
dogecoin
Dogecoin (DOGE) $ 0.164029 1.83%
tron
TRON (TRX) $ 0.223654 0.03%
staked-ether
Lido Staked Ether (STETH) $ 1,836.83 2.27%
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 82,872.20 0.10%
pi-network
Pi Network (PI) $ 1.63 2.02%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 80,081.46 2.89%
leo-token
LEO Token (LEO) $ 9.71 0.47%
stellar
Stellar (XLM) $ 0.272069 6.13%
usds
USDS (USDS) $ 1.00 0.08%
chainlink
Chainlink (LINK) $ 12.80 3.30%
hedera-hashgraph
Hedera (HBAR) $ 0.187341 5.88%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,206.69 1.85%
avalanche-2
Avalanche (AVAX) $ 18.08 1.20%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 2.78%
sui
Sui (SUI) $ 2.14 4.45%
the-open-network
Toncoin (TON) $ 2.71 0.60%
litecoin
Litecoin (LTC) $ 86.92 4.21%
bitcoin-cash
Bitcoin Cash (BCH) $ 327.89 7.16%
mantra-dao
MANTRA (OM) $ 6.34 0.52%
polkadot
Polkadot (DOT) $ 3.87 2.53%
ethena-usde
Ethena USDe (USDE) $ 0.999575 0.04%
weth
WETH (WETH) $ 1,837.89 2.33%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.16%
bitget-token
Bitget Token (BGB) $ 4.15 1.12%
hyperliquid
Hyperliquid (HYPE) $ 12.39 6.78%
whitebit
WhiteBIT Coin (WBT) $ 28.11 2.18%
monero
Monero (XMR) $ 206.05 0.77%
wrapped-eeth
Wrapped eETH (WEETH) $ 1,951.83 2.31%
susds
sUSDS (SUSDS) $ 1.04 0.12%
uniswap
Uniswap (UNI) $ 5.76 1.23%
dai
Dai (DAI) $ 0.999987 0.01%
aptos
Aptos (APT) $ 4.96 3.47%
near
NEAR Protocol (NEAR) $ 2.50 0.90%
pepe
Pepe (PEPE) $ 0.000007 0.73%
ethereum-classic
Ethereum Classic (ETC) $ 17.51 2.06%
ondo-finance
Ondo (ONDO) $ 0.816149 4.02%
internet-computer
Internet Computer (ICP) $ 5.35 1.99%
aave
Aave (AAVE) $ 166.08 3.29%
okb
OKB (OKB) $ 41.09 0.09%
mantle
Mantle (MNT) $ 0.73044 2.49%
gatechain-token
Gate (GT) $ 20.00 0.27%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 80,190.49 2.79%