Latest inflation figures, known as the
Harmonised Index of Consumer Prices (HICP), from several large Eurozone member
states will be out later this morning. The countries concerned include Germany,
France and Spain. A lower than expected figure, especially in Germany, can be
expected to impact to the downside for the Euro, as it will increase the
incentive for the ECB to further accelerate easing measures, which would be a
negative for the Single Currency. It will be interesting to see if the most
recent drop in the price of oil has yet filtered through into these figures.
US
retail sales
The last reading for retail sales in
the USA, for the month of June and released last July 14th, showed “a
monthly annualized growth rate of -3.40%, compared to an average annualized growth
rate of 4.24%”. This consistent recent underperformance in retail sales
Stateside has been something of a puzzle to many market watchers. Other
economic indicators, such as employment and wage reports, as well as a drop in
the price of energy related products due to the fall in oil prices, should, at
least in theory, have provided more money for consumers to spend.
It would appear that personal
experiences following the global financial crisis are still very much
remembered, and those same consumers are saving instead of spending. Today’s
report should give an update on this.
No comments:
Post a Comment