Markets to observe US data for reassurances that recovery remains firm - TD Securities

FXStreet (Łódź) - The TD Securities team of experts point out that US data releases will be in the centre of attention this week, as market participants seek reassurances that the economy is on a stable path toward recovery.

Key quotes

"The spike in volatility last week took a toll on the USD, which closed 1.8% below its early-October peak. However, the greenback managed to pull out of the lows for the week on Friday as positive housing data further allayed concerns of a domestic deceleration that had triggered the sharp fall in Treasury yields upon the release of poor retail sales on Wednesday."

"Existing and New Home Sales out tomorrow and Friday, respectively; and CPI on Wednesday will be under the spotlight. The former should continue to reflect the better tone in the recent flow of housing sector, while the September CPI report will offer some indication on whether the weakening in inflationary momentum is continuing."

"There will be no Fed speakers this week though, as we enter the blackout period ahead of the next FOMC meeting later this month but we share Rosengren’s views that it is highly unlikely that the data will alter the Fed’s view of the world ahead of the wind up of the QE programme at the end of the month."

"China’s and the UK’s Q3 GDP, and Eurozone and Chinese Flash PMIs will also help to characterize the strength of the global economy."