Retail sales, up next

Investors gear up ahead of data key retail sales numbers and a few Fed speeches

By Nadia Elbilassy | @Nadia Elbilassy | 16 January 2024

Market close
  • Retail sales data, expected to show a 0.4% increase, holds significance for the Federal Reserve's decision on rate cuts, with potential post-holiday estimates rise.

  • Gold prices retreated to $2030, slipping below the 20-day EMA, influenced by a recovering dollar and cautious market sentiment ahead of Fed officials' speeches.

  • The Euro remained below 1.0900, unaffected by the ZEW Indicator's slight uptick for Germany's economic sentiment, while the eurozone's situation indicator improved.

On the Market Watch!

Retail sales pending

Focus falls on tomorrow’s retail sales data, which will impact the Feds final call on rate cuts. The month-to-month indicator is estimated to come at 0.4% slightly higher than the previous 0.3%. its widely expected that we may see a rise in estimates, after the holidays at the year end.

Elsewhere, the World Economic Forum in Davos is poised to commence. A survey of leading economists indicates a "subdued" outlook for global growth in the coming year.

Gold dips

Gold prices declined back to key support near $2030 on Tuesday, correcting by dipping below the 20-day exponential moving average. As the dollar staged a recovery as market participants continued to be cautious ahead of a few speeches later this week by Fed officials.

The recent surge in gold prices was driven by heightened safe-haven demand, particularly amid increased geopolitical tensions in the Middle East.

The Euro

The Euro consolidated below 1.0900 shrugging off the ZEW Indicator of Economic Sentiment for Germany which has once again seen a marginal uptick standing at 22.7 points, up from the expected 20.2 and below Decembers 23.0. In contrast, the situation indicator for the eurozone increased, climbing 3.4 points to a new reading of minus 59.3 points.