17 Jan 2014
Flash: UK Retail Sales the only key data - BTMU
FXstreet.com (Barcelona) - Derek Halpenny, European Head of Currency Strategy at the Bank of Tokyo Mitsubishi UFJ notes that on the data front from Europe today the only key data will be from the UK with retail sales.
Key Quotes
“Given the retail sales data is a volume reading, there is a chance that today’s report reveals some strength based on discounting."
"With the dollar looking resilient we suspect gains for the pound are more likely versus the euro. Still, against the euro we wouldn’t expect major gains either. ECB Executive Board member Coeure stated yesterday that a further round of cheap loans may not be required. That may be so but what is clear is that something will have to be done to counter upward pressure on short-term yields."
"Forward guidance will prove meaningless very quickly if the actions of the ECB are inconsistent with what they are saying. While the dollar looks set for further gains more broadly, gains versus the euro will remain a hard slog."
Key Quotes
“Given the retail sales data is a volume reading, there is a chance that today’s report reveals some strength based on discounting."
"With the dollar looking resilient we suspect gains for the pound are more likely versus the euro. Still, against the euro we wouldn’t expect major gains either. ECB Executive Board member Coeure stated yesterday that a further round of cheap loans may not be required. That may be so but what is clear is that something will have to be done to counter upward pressure on short-term yields."
"Forward guidance will prove meaningless very quickly if the actions of the ECB are inconsistent with what they are saying. While the dollar looks set for further gains more broadly, gains versus the euro will remain a hard slog."