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17 Nov 2022

Market Briefing: Strong US retail sales prompt Fed second-guessing, lifting the dollar

Equity futures are pointing to a weaker session, yields are holding ground, and the dollar is edging upward as the impact of yesterday’s stronger-than-expected retail sales report continues to reverberate across the economic landscape. American consumers showed no sign of slowing spending in October, with receipts rising for basic inputs like gas and food, along with higher-value items like furniture and new cars – a dynamic that suggests household balance sheets continue to support increased consumption levels. If this is sustained, the implications for Federal Reserve policy are clear: rates will have to climb higher than currently assumed. Chancellor Jeremy...

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