The retail sales report makes it more likely at the margin to cause rate cuts. The balance of risks is that the next BOE rates move is lower, which would be negative for sterling.
More Quotes from Adam Cole:
Sentiment is generally negative for the dollar even in the face of good news. The market is looking through the expected rate hikes. If you take away the interest rate support for the dollar... and the structural problem is still there, the trend for the dollar is downwards.Adam Cole
The signal that the Fed seemed to be sending yesterday is that they don't know where rates are going beyond March, hence the references to data-watching.
Adam Cole
The risk is that the deficit is rather worse than the market is looking for and if that's the case it may swing the focus back to structural dollar negatives and away from the interest rate focus.
Adam Cole
The interest rate dynamics have been favorable and the indicators have been better than expected over the last four or five weeks.
Adam Cole
This left orders in the fourth quarter up an impressive 4.1 quarter-on-quarter and points to strong capital spending in the early months of 2006, which will likely make the Bank of Japan that much more confident that the time is approaching to start removing its ultra-easy monetary policy.
Adam Cole
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Based on Topics: Balance Quotes, Danger & Risk QuotesBased on Keywords: boe
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