The United States Dollar is trading in mixed ranges this morning following a less than stellar retail sales print that reversed the Dollar’s overnight stabilization.
US retail sales unexpectedly stalled in December, showing no change against November despite an expected 0.4% advance, and fourth quarter GDP estimates are being trimmed as a result. Traders are beginning to consider the possibility of three interest rate cuts in 2026 as a result, rather than the previously agreed two.
Traders have their eyes locked on tomorrow’s employment numbers, where we are expecting to see the greatest addition to payrolls in four months, and for unemployment to hold steady. Another key number to watch will be the annual jobs count revision, which is expected to print around -800k, which could further imply slower consumer spending alongside the weak retail sales figures.
What to Watch This Week…
- US Nonfarm Payrolls Wednesday Feb 11th
- Monex USA Online is always open
GBP ⇓
The British Pound is down against the Buck this morning and suffering from the uncertainty of the situation currently swirling around Keir Starmer. The Pound is likely to remain under pressure until this matter is resolved, and Labour party leadership, most notably Scottish leader Anas Sarwar, have begun publicly calling for the 58th Prime Minister’s resignation. Ousting Starmer would lead to the UK electing its fifth PM in as many years amidst concern that some of Starmer’s most likely successors would lead to a plunge in the value of the Pound.
