US Consumer Falters as Fed Faces Rate Hike Decisions
The US consumer's strong run may finally be slowing down, and Friday's retail sales figures are putting pressure on the Federal Reserve to keep interest rates on hold. Walmart and Home Depot will report their earnings this week, and investors are closely watching the tech sector for signs of an AI spending boom.
Meanwhile in Asia, the dollar slipped broadly as traders have become increasingly uncertain about rate hikes. In contrast, the Aussie and kiwi currencies notched two-month highs while sterling and the euro approached multi-month peaks.
The yen rose slightly as market sentiment shifted towards a more aggressive interest rate hike schedule by Japan's policymakers. Bank of America analysts predict four rate hikes between September and July next year, taking the policy rate to 2%.