What is the outlook for USD, given the weak retail sales report earlier this week?
Here is their view, courtesy of eFXdata:
CIBC Research discusses its reaction to today’s US retail sales for the month of February.
“US retail sales dropped off in February as poor weather conditions weighed on activity following a surge in spending in January. Total retail sales dropped by 3.0%, well below the consensus expectation for a 0.5% decline, however, a positive revision to the prior month (now +7.6 vs. +5.3% prior) mitigated the disappointment. Weakness was broad-based, as gasoline was the only category to show growth on the month, a result of higher prices,” CIBC notes.
“With the adverse weather in the rearview mirror, the coming months are set to see an acceleration in consumer spending as services continue to re-open and additional fiscal stimulus arrives,” CIBC adds.
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