Among the key economic reports to be released next week in the US is July’s retail sales on Tuesady. Analysts at Wells Fargo, suspect sales growth slowed to around 0.1%. Market consensus points to a modest decline. Analysts will watch closely the upcoming US numbers after the sharp decline in Consumer Sentiment reported on Friday.
Key Quotes:
“Retail sales were generally expected to slow this summer after their rapid recovery, as consumers shifted more spending toward services and experiences and away from goods. Data for June pushed back at this, as sales rose 0.6%, beating expectations for a 0.3% decline. Rather than a turn back toward stay-at-home habits, the details of the report showed that people were getting back out, with sales at clothing stores, gas stations, restaurants and bars all contributing to the top-line beat.”
“Looking ahead to July, we suspect sales growth slowed to around 0.1%. The spread of the Delta variant has tempered hopes for a further reopening of the economy. We did not see a reversal in visits to retail and recreation locations or seated diners at restaurants as we had seen in prior waves, but there was a stall in the return to normal in July. While retail sales have done well in the face of prior COVID waves, it seems unlikely that consumers will feel compelled to splurge on additional durable goods and appliances as they did last year.”
“Durable goods by definition are meant to last, so the second appliance or recreational good may not be as helpful as the first. In addition, the run-up in goods prices over the past few months could lead to some sticker shock, making people more hesitant to spend. Over the next two months, however, the impact of the advance tax credit payments that went out in the middle of July as well as some much needed back-to-school shopping could offset some of these headwinds.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD dips below 1.1000 as Trump authorizes 90-day pause on tariffs
EUR/USD retreated below the 1.1000 mark on headlines indicating that United States President Donald Trump authorized a 90-day pause on non-retaliating countries. The pause applies to reciprocal and 10% tariffs, effective immediately, according to a Truth Social post. FOMC Minutes coming up next.
GBP/USD eases further on tariffs pause announcement, USD still weak
GBP/USD's correction seems to have met a decent contention around the 1.2750 zone so far on Wednesday, as investors continue to assess the ongoing US-China trade war ahead of the release of the FOMC Minutes. Pause in 10% and reciprocal tariffs lifted the mood.
Gold recedes to $3,050 on Trump's headlines
Gold prices now give away part of their advance and revisit the $3,050 zone per troy ounce after President Trump announced a 90-day pause on reciprocal and 10% tariffs.
Fed Minutes to offer clues on rate cut outlook amid tariff uncertainty
The eagerly awaited minutes from the US Fed’s March 18-19 monetary policy meeting are set for release on Wednesday at 18:00 GMT. During the gathering, policymakers agreed to keep the Fed Funds Target Range (FFTR) unchanged at 4.25%-4.50%.
Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.