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Dollar pops on strong US retail sales

"The person who starts simply with the idea of getting rich won't succeed; you must have a larger ambition." - John D Rockefeller

 

 

HEADLINES

 

 

  • U.S. Retail Sales Jump by Most Since March, Topping Forecasts
  • Dollar at 16-month high after strong U.S. retail sales data
  • Gold Dips Again, But Stays at Mid-$1,800 on U.S. Inflation Scare
  • Oil Rally Halts as More Output Seen; U.S. Stockpile Data Awaited
  • S&P 500 Sets Sights on Record High as Retailers Rally
  • Bitcoin tumbles below $60,000 as US regulation and China crackdown weighs
  • Equities: Focus more on stocks than sectors and styles over the next year – Morgan Stanley

 

 

FOREX

 

 

U.S. Retail Sales Jump by Most Since March, Topping Forecasts

 

U.S. retail sales rose in October for a third month as higher prices boosted merchant receipts and household demand remained resilient. The value of overall retail purchases increased 1.7% last month, the most in seven months, following an upwardly revised 0.8% advance in September, Commerce Department figures showed Tuesday. Excluding gas and motor vehicles, sales gained 1.4% in October. The figures aren’t adjusted for price changes.

 

Dollar at 16-month high after strong U.S. retail sales data

 

The dollar rose to a 16-month high on Tuesday after data showed U.S. consumers looked past rising prices and drove retail sales higher than expected last month, while the euro slumped amid growth concerns and a surge in COVID-19 cases.

U.S. retail sales rose 1.7% in October, topping consensus expectations of a 1.4% rise, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods as the ongoing pandemic squeezes supply chains.

 

 

COMMODITIES

 

 

Gold Dips Again, But Stays at Mid-$1,800 on U.S. Inflation Scare

 

Gold prices fell for a second straight day but still closed above the key mid-$1,800 level — in spite of the twin weights of rallying U.S. bond yields and the dollar.

Bullion had a scintillating seven-session run that resulted in a net gain of 4.6% over two weeks, before profit-taking began on Monday. The downside continued on Tuesday although analysts said bullish momentum in the yellow metal did not seem to be over.

 

Oil Rally Halts as More Output Seen; U.S. Stockpile Data Awaited

 

Oil prices aren’t ready to collapse yet in the same fashion they rose. Yet, new highs aren’t happening in a market seeing steady drops or slower advances each day, especially after a forecast Tuesday that world output may actually rise in the near-term — something few expected.

The Paris-based International Energy Agency, or IEA, said global production increased by 1.4 million barrels a day last month, and will add as much again over November and December as the U.S. Gulf of Mexico restores supplies halted by the end-August Hurricane Ida.

 

 

STOCKS

 

 

S&P 500 Sets Sights on Record High as Retailers Rally

 

The S&P 500 jumped Tuesday to near record highs, led by retailers following a rally in Home Depot and optimism on the economy after data showed consumer spending remained buoyant.

Home Depot (HD) rallied more than 5%, helping the broader retail sector advance after the home improvement retailer reported better-than-expected third-quarter results underpinned by higher prices.

 

Bitcoin tumbles below $60,000 as US regulation and China crackdown weighs

 

The price of Bitcoin fell back below $60,000 on Tuesday for the first time since November 1 as the passage of the US infrastructure bill and a further crackdown on cryptocurrency mining in China weighed on most major digital coins.

 

 

ANALYSIS

 

 

Equities: Focus more on stocks than sectors and styles over the next year – Morgan Stanley

 

“With financial conditions now tightening and earnings growth slowing, the 12-month risk/reward for the broad indices looks unattractive at current prices. More specifically, we expect solid earnings growth again in 2022 offset by lower valuations. However, strong nominal GDP growth should continue to provide plenty of good investment opportunities at the stock level.”

“We will have to deal with the excesses created by the extreme nature of this recession and recovery. That breeds higher uncertainty and dispersion, making stock picking more important than ever in the year ahead.”

 

 

CHART

 

 

Gold  – Daily Candlesticks

 

Source: GKFX Prime Metatrader 4

XAU/USD made a fakeout above the over one-year-old down-sloping trendline and closed lower with a daily bearish engulfing candlestick pattern. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

 

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/equities-focus-more-on-stocks-than-sectors-and-styles-over-the-next-year-morgan-stanley-202111160912
https://www.investing.com/news/stock-market-news/sp-500-sets-sights-on-record-high-as-retailers-rally-2681644
https://www.investing.com/news/commodities-news/oil-rally-halts-as-more-output-seen-us-stockpile-data-awaited-2681698
https://www.investing.com/news/economic-indicators/us-retail-sales-jump-by-most-since-march-topping-forecasts-2681106
https://www.investing.com/news/commodities-news/gold-dips-again-but-stays-at-mid1800-on-us-inflation-scare-2681659
https://www.investing.com/news/economy/euro-crumbles-traders-wait-on-us-consumer-test-2680543

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