16 Jul 2013
Flash: US 'Retails' weakness hinder growth outlook - BAML
FXstreet.com (London) - Alexander Fletcher in Global Research at BofA Merrill Lynch said weak US retail sales data pushed our estimate of US 2Q growth down to 0.9%.
"We expect this weakness to spill over into 3Q. Furthermore, CPI data coming out in the US and the Euro area today should confirm the global disinflationary trend, placing downward pressure on global yields and providing tail winds to EM debt". He adds that Germany’s ZEW survey was also important to watched today given the recent improvement in European survey data. The EM calendar is light, and includes wages and core have CPI inflation data out of Poland and IGP-10 inflation data in Brazil.
"We expect this weakness to spill over into 3Q. Furthermore, CPI data coming out in the US and the Euro area today should confirm the global disinflationary trend, placing downward pressure on global yields and providing tail winds to EM debt". He adds that Germany’s ZEW survey was also important to watched today given the recent improvement in European survey data. The EM calendar is light, and includes wages and core have CPI inflation data out of Poland and IGP-10 inflation data in Brazil.