News and Market Analysis

US in a spending frenzy during covid

When they want to flex their economic muscle, Americans aren’t shy to do so. Whilst most of  the world is going into lock-down the US has gone into a spending spree with retail sales forecast to rise 1.9% in July. This along with better than expected payroll numbers in July, spending being close to double the amount expected for the same period and unemployment claims taking a nosedive, all point to a very comfortable consumer. One might even say they’re making it rain in the land of plenty.

To keep this simple, it seems the dollar is well and truly back. With unemployment claims expected to continue to increase, CPI almost doubling for July and Industrial production expected to rise in July means only upside for the dollar.