15.05.2019: US economy signals slowdown (USD, SP500, CAD)
Traders are selling the US dollar after its partial recovery amid the disappointing statistics from the United States.
Donald Trump’s comment that the trade conflict with China is just “a little squabble” restrained a decline of the stock indices. Although, tensions remain as today’s reports from China regarding industrial production and retail sales are likely to worry the country’s authorities. The fact that trade conflicts affect China’s economy pushes its government to take significant stimulus measures.
In the meantime, the American economy has weakened as well, and today’s economic data from the United States confirms it. The greenback lost momentum, and its index got back to 97.50.
Firstly, the market was shocked by a decline in retail sales after a surge in consumer activity in March. In April, the index slumped to -0.2%, while experts anticipated its dynamic to remain positive.
The industrial sector also did not meet expectations. Industrial production contracted by 0.5% reflecting the worse picture since May 2018.
However, these weak reports did not influence the USD/CAD pair as Canada’s not impressive inflation data balanced the negative towards the greenback. Thus, the pair kept on trading sideways near 1.3480. Nevertheless, increasing oil prices pushed the quote out of its trading range, below 1.3460.
So, this is the sentiment at the end of a trading session today. Watch our videos tomorrow to find out what happens in the financial markets next. See you!
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