US Retail Sales are expected to rebound from April historic loss. The market and dollar impact will depend on the degree of sales recovery as in a consumption-based economy there is no substitute for the consumer, according to FXStreet’s analyst Joseph Trevisani.
See US Retail Sales Preview: Five major banks expectations for May report
Key quotes
“The consensus forecast for an 8% gain in overall sales, about half the April loss and for a 3.8% rise in the control group, about one-fourth the prior decline, will not be enough to convince markets that the economy is going to outperform expectations.”
“If the sales figures improve markedly on the forecasts, equities and the dollar will benefit. The greater the surprise the better the market result. If sales are as predicted they will be a market wash and if worse equities and the dollar will suffer.”
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