Weak US retail sales might boost stocks
Weak US retail sales might boost stocks
US retail sales rose by only 0.2% in February after a 1.2% drop a month earlier (revised from -0.9%). The values came out weaker than expected, further strengthening the arguments of those pointing to recession risks in the US economy.
This news puts additional pressure on the dollar, which has been attempting to consolidate after a 6% decline from the peak for a little over a week. Rising speculation about an imminent Fed rate cut is also weighing against the dollar.
However, we would also not want to lose sight of the broader picture. US retail sales (adjusted for seasonal factors but not inflation) are increasing by 3.2% y/y against the overall inflation rate of 2.8%, which means we see a real increase in activity, albeit not a high one.
For equity markets, the bad news on the economy and bringing the key rate cut closer could be a positive on which to build the foundation for the next market rally.
By the FxPro Analyst Team
EBC Markets Briefing | "Blue Wave" poised to sweep across stock markets
Stocks sink amid AI wipeout, dollar shines ahead of NFP
US Payrolls in Focus as Wall Street Rout and Falling Yields Cap the Dollar | 6th November, 2026
Week Ahead – Inflation and geopolitics in focus as US political landscape shifts
The dollar saves the day
Tech Stocks Lead US Selloff Ahead of Payrolls
Technical Analysis – USDJPY stays rangebound, pinned at support near 158.00
