Stocks are set to rise while the dollar may stumble as the US Retail Sales smashed expectations by rising by 17.7%, doubling the expectations, FXStreet’s analyst Yohay Elam reports.
Key quotes
“Retail sales leaped by 17.7% in May, more than double 8% expected and on top of an upwards-revised 14.7% drop in April. The Retail Control Group – core of the core – surged by 11%, far above 4.7% projected and on top of an upward revision to a fall of 12.4% in April. Core sales are up 12.4% against 5.5% and -15.2% prior.”
“Stocks are set to rise but the dollar will likely decline. While upbeat figures are usually supportive of the local currency, the dollar is different – the world’s reserve currency is a safe-haven currency. And if there is no need to seek a place to hide, the greenback may grind lower.”
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