Urgent: Positive data is not enough for the dollar to rise… and important statements from the Federal Reserve!

At a time when the dollar is falling after its unprecedented rise in 20 years, i.e. since 2002, after stocks rose last night and continued to rise to include Nasdaq, Dow Jones and S&P 500 futures today, retail data appears to be an additional indicator for investors about the strength of the US economy and its impact on the bilateral Which of its role is to spread fear in them of economic stagnation, which is the duality of declining growth and increasing inflation, which comes due to the Fed’s tough policies after large periods of injecting funds to confront the Corona crisis.

retail sales

The monthly retail sales for the month of April recorded a growth of 0.9% as expected, and the previous result was corrected to record a monthly growth of 1.4% for the month of March from March.

While the annual retail sales grew by 8.19%, the previous growth was 6.61%.

The monthly core retail sales grew by 0.6%, while experts had expected a growth of 0.4%.

The most important thing on the economic calendar today

The markets are awaiting the statements of the Fed members who will deliver their words today, commenting on the state of the market, inflation, the Fed’s tools and the upcoming interest rate hike. The Fed Chairman, Jerome Powell, will also speak this evening about inflation and the state of the US economy in light of the data and the labor market.

Pollard’s remarks

Fed member Bullard stated that the monetary tightening process carried out by the US Federal Reserve is supposed to actually reduce and control inflation, and this results in large-scale re-pricing, which causes violent market fluctuations.

Bullard considered that stock price volatility reflected general repricing. Speaking of the rate hike, Bullard said that a 50bps rate hike at the next Fed meeting would be fine if things stay as they are now.

Markets now

The dollar index contracts down 0.7% to record 103.440, down from a 20-year high near 105 against a basket of foreign currencies.

The 10-year US Treasury yield rose 1.56% to 2.924%, down from its 4.00% level.

Gold contracts rise to record 1829.7, an increase of 0.87%, while spot gold contracts rise by 0.4% and trade at $ 1831.07 an ounce.

Index futures are up today with the Dow Jones rising 1.15%, the S&P 500 rising 1.42% and the Nasdaq rising 1.75%.

Silver is up 1.01% to trade at $21.742.

The Turkish lira fell by 1.35%, despite the weakness of the dollar, to trade at 15.58 lira / dollar, after touching the limits of 16 lira / dollar this morning.

While the pound maintains its decline against the dollar and is trading at 18.26, with a marginal advantage today against the dollar.

The shekel rises against the US dollar by 1.23% to record 0.2984 against the dollar, affected by the rise in technology shares and the weakness of the dollar.

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