Jay, I discovered the trick AG is playing:
yesterday afternoon:
<<Both retail sales and unemployment claims came in weaker than analysts had expected on Thursday.
The commerce department reported a 0.3 per cent fall in total retail sales in January. Sales growth for December was also scaled down due to lower auto sales.
Meanwhile initial claims for unemployment benefit rose from 357,000 to 363,000 in the week ending February 7. Analysts had expected initial claims to fall to 345,000.>>
The trick AG played was, he comes out, removes the floor under the USD before this data comes out. What's the result he wanted to achieve?
Look to the market perception: USD is going lower because AG said that interest rates are not going to be raise. NOT because, as the data shows, the economy is on its way down and it is stagnated. Thus giving the impression that there is "growth" in the economy.
Wednesday's drop of the USD vis a vis Sterling and Euro, was not compounded , yesterday, Thursday, by a subsequent drop, as a result of this unemployment and retail data.
LESSON: We need to look to AG talk as, craftly and deliberately, acting as filter to smooth the ripples in the market and coushioning the drops. |
