Daily Market Report 16/05/16

USD

On Friday the US released key data with mixed results; the retail sales, core retail sales and the prelim UoM were all positive but the producer pricing index came in below forecast.

Retail sales jumped in April by the most in a year, indicating consumer spending will help the US economy recover from an early-year slowdown.Healthier household finances, reflecting reduced borrowing and increased savings, mean consumers have the wherewithal to boost spending even as gasoline prices rise and job growth moderates. Core sales, the figures that are used to calculate gross domestic product and which exclude such categories as autos, gasoline stations and building materials, advanced 0.9 percent, the most since March 2014.

The University of Michigan report showed consumers were feeling more optimistic this month, as expectations for future growth hit highs for the year.

US producer prices rose in April as energy prices increased, but a marginal gain in the cost of services pointed to a moderate increase in inflation in the coming months.
 

GBP
 

Over the weekend Brexit news again dominated the headlines as outspoken leave campaigner Boris Johnson compared the aims of the EU to build a "superstate" with that of Hitler and Napoleon.
 
Johnson's outrageous claims were widely ridiculed with former cabinet minister Yvette Cooper accused Johnson of playing a "nasty, nasty game".
 
"The more he flails around with this kind of hysterical claim, the more he exposes his shameful lack of judgement, his willingness to play the most divisive cynical politics, and the emptiness of his arguments," said the member of Britain Stronger in Europe.
 
US republican nominee Donald Trump told Piers Morgan in an interview for ITV's Good Morning Britain that although he had investments in the U.K. he had no preference on the Brexit vote.
 
However, the business mogul slammed the EU as a "disaster" for migration and as "very, very bureaucratic" and "difficult" for business.
 
"I think if I were from Britain, I would probably not want it. I'd want to go back to a different system," he said in the interview, which will air today.

 

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