Dollar Declines Against Euro Before U.S. Retail Sales Report

[leftchick]

http://quote.bloomberg.com/apps/news?pid=10000101&sid=aCAnb7XXgWVo&refer=japan


July 14 (Bloomberg) -- The dollar fell the most in a week against the euro before a government report expected to show the biggest drop in U.S. retail sales since February 2003.

Today's decline comes after the U.S. currency had its biggest advance against the euro in two weeks yesterday, following a government report that showed the U.S. trade deficit unexpectedly narrowed in May. Retail sales may fall 0.8 percent, according to the median of 68 forecasts in a Bloomberg survey.

``Retail sales could provide the spark for the dollar to come under further pressure,'' said Ryan Faulkner, a currency strategist in London at Lehman Brothers Holdings Inc. The dollar may this week slump to $1.25, the lowest since March 1, he said.

Against the euro, the dollar slid to $1.2364 as of 10:58 a.m. in London from $1.2327 late yesterday in New York according to the electronic foreign-exchange dealing system EBS. The yen dropped for a third day to 109.07 per dollar from 108.66.

[iconoclastic cat]

1. Okay, I'm ignorant. What does this mean, DUers?

[papau]

2. inflation-higher import $ -that needs to be hidden via statistical games

Also consumption - which drives our economy - is slowing.

Bush and the media are trying to sell the improving economy, the tax cuts have allowed us to turn the corner and we are looking at a bright future - as long as we defeat that tax cut remover for those making more than 200,000 per year, Mr. Kerry.

It will require media meetings plus faxes from Rove to the corporate owners of the media over the next few days to come up with a spin that says this should not be paid attention too.

Watch for weather reports - it was - fill in the blank - too cold - too wet - too dry - etc. - to shop during this period. They - my people - will shop now because they have confidence in our leader and know that the wealth gained by the super rich will trickle down and put dollars in everyones pockets. And by the way, we will borrow a bit more and increase the National Debt so as to send you another $300 dollar check - and you will like that, won't you?

And increases in the National Debt are not birth taxes - we just need to modernize Social Security and Medicare and the money saved will take care of everything (and do not equate money saved with cut back in benefits - it is the Dems who are bad for the economy - just listen to your media as they repeat what we tell them).

[iconoclastic cat]

3. Birth tax!

That's some nice spin! I dig it!

Thanks for the explanation!