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14 May 2015
US consumption growth failing to materialise – Investec
FXStreet (Barcelona) - Jonathan Pryor, Head of FX dealing at Investec, comments that the disappointing retail sales report suggests consumption growth in US has failed to materialize even after the fall in energy prices, and that Fed rate hike expectations continue to be pushed further out.
Key Quotes
“The US Dollar sell off continued yesterday after another disappointing US Retail Sales print, where April's numbers showed continued weaker consumption into Q2. After a period of lower oil prices many had expected the money saved on petrol and energy in the US to find its way into additional consumption, but so far in 2015 that has failed to materialise.”
“Whether individuals remain risk averse and are saving any benefits or whether there is still some lag until it feeds through, a case continues to grow for the Fed to push back a first rate rise to later in 2015 and currencies markets are reacting.”
Key Quotes
“The US Dollar sell off continued yesterday after another disappointing US Retail Sales print, where April's numbers showed continued weaker consumption into Q2. After a period of lower oil prices many had expected the money saved on petrol and energy in the US to find its way into additional consumption, but so far in 2015 that has failed to materialise.”
“Whether individuals remain risk averse and are saving any benefits or whether there is still some lag until it feeds through, a case continues to grow for the Fed to push back a first rate rise to later in 2015 and currencies markets are reacting.”