Retail Sales show some strength but its still about the unknown ahead

  


Forex news for North American trading on August 14, 2020.

In other markets:

  • Spot gold is down $8.90 or 0.46% $1944.86
  • Spot silver is down $1.02 or 3.73% $26.48
  • WTI crude oil futures are down $0.03 or -0.07% at $42.21

In the US debt market today, yields are ending the day mixed. The 30 year bond still has some digestive problems it seems after the bad auction yesterday. It is up by 1.8 basis points at 1.445%. The other parts the yield curve are down modestly.  

US yields are mostly lower

US stocks muddled through an up and down session and ended the day mixed. The broad US  indices eked out a small gains in the US this week, with the Nasdaq basically unchanged and the S&P up 0.64%. The Dow led the way with a gain of 1.81%.  

In Europe today, the major indices closed the London session lower but they outperformed this week. The Spain’s Ibex was up 2.92% and Italy’s FTSE was up 2.62%. Of course they each have a lot of catching up to do. They are down -25% and -14.8% respectfully for the year.  The FTSE 100 (-19.26%) and France’s CAC (-16.98%) are not exactly lighting the world on fire either.  The Nasdaq (up 22.81%) and S&P (up 4.4% YTD) are far outpacing Europes results. Even the Dow at -2.13% is looking good in comparison.  

Stock market gains for the weekIn the forex market today, the USD is ending the day mixed/marginally lower. The commodity currencies were mixed with the greenback higher vs the CAD, down vs the AUD and unchanged vs the NZD.  Against the GBP and the JPY the dollar ended the NY session little changed from early NY levels after seeing the dollar go lower and back higher by the close. The EURUSD move lower in the NY session by about 0.20%. (or 25 pips).   
The US dollar was marginally lower

Economically today, although the retail sales headline number came in weaker than expectations at 1.2% vs. 2.1%, analysts noted that Amazon’s prime day did not happen this year which may have slowed sales. Retail sales ex auto, ex auto and gas as well as the control group were better than expectations as were the revisions.    Although numbers are for July, the focus will remain on the road ahead as the failure to pass him a new stimulus bill, and Covid concerns into the fall could lead to a slower economy. The good news is stimulus remains strong and those that are in the stock market, continue to do well.

Thank you for all your support this week. Wishing you all a happy and healthy weekend.



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