US Retail sales raised further concerns as the US consumer continues to slow down their spending habits. Despite the figure being +0.2%, printing higher than its previous reading, it was a big miss vs the expected +0.6%, making the FOMC’s task on Wednesday even more delicate.
Markets were rangebound yesterday, but we could see this shift quickly after Isreal launched its largest strike in Gaza since the agreed ceasefire. Coupled with an unproductive call between Trump and Putin, this certainly could cause concern to ripple through FX markets.
Today, we’ll draw our attention to the Canadian CPI report, Trump's phone call with Putin and the German ZEW, which is expected to jump to 50.3.
*Daily move - against G10 rates at 7:30am, 18.03.25
** Indicative rates - interbank rates at 7:30am, 18.03.25
Given the escalation in Gaza, and Putin’s demands over land being considered as unrealistic, we certainly have the events to send markets into a risk-off mood and make haven currencies attractive.
However, the likelihood is markets will remain hesitant and prep for Wednesday and Thursday’s interest rate decisions, especially after US retail sales added further concern to the US economy.
Read more about the Fed and BoJ's interest rate decisions here:
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