Global markets started the week with a cautiously optimistic tone, as risk appetite ticked slightly higher.
Mixed US Retail Sales Weigh on the Dollar
The key economic release of the day came from the United States, where retail sales for February posted a modest rebound of 0.2%—falling short of the 0.6% forecast. January’s figure was also revised lower to a 1.2% decline. The underwhelming data added to concerns about the strength of US consumer activity.
In response, the US dollar softened, slipping 0.4% against both the euro and the pound. Currency markets appear to be pricing in the likelihood that the Federal Reserve will maintain its current interest rate stance during tomorrow’s policy announcement.
Looking Ahead: US & Japan in Focus
Investors will now turn their attention to February’s US industrial production figures, due later today. Meanwhile, all eyes are also on the Bank of Japan, which is widely expected to leave rates unchanged during its upcoming meeting.
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