USD – The dollar rose to a 16-month high on Tuesday after data showed US consumers looked past rising prices and drove retail sales higher than expected last month. Retail Sales for October printed at +1.7% versus consensus of +1.4% and last month’s print of +0.7%.
EUR – The euro slumped on Tuesday, pressured by ECB President Lagarde’s latest comments. Lagarde stated that a rate hike wouldn’t come until after 2022 as a hike now would only choke off economic recovery.
Societe Generale notes that “With the ECB still insisting that interest rates won’t go up next year, there is not much point in trying to catch a falling knife. Rallies in the euro have been sold resolutely since September and investors are not abandoning this tactic.”
GBP – The pound rallied after Tuesday’s positive employment report showed British employers hired more people in October after the pandemic’s furlough scheme ended, easing some of the Bank of England’s concerns about raising interest rates too soon.
EUR – The euro slumped on Tuesday, pressured by ECB President Lagarde’s latest comments. Lagarde stated that a rate hike wouldn’t come until after 2022 as a hike now would only choke off economic recovery.
Societe Generale notes that “With the ECB still insisting that interest rates won’t go up next year, there is not much point in trying to catch a falling knife. Rallies in the euro have been sold resolutely since September and investors are not abandoning this tactic.”
GBP – The pound rallied after Tuesday’s positive employment report showed British employers hired more people in October after the pandemic’s furlough scheme ended, easing some of the Bank of England’s concerns about raising interest rates too soon.