The recent news is affecting U.S. sentiment as Walmart CEO states 15% of customer says the fiscal cliff will affect what they spend for Christmas.
Dollar General CEO Richard W Dreiling also has made remarks about the negative influence of the Fiscal Cliff saying that customers are “scared”.
In spite of negative consumer sentiment, retail sales this month are positive. A large portion of the retail sales bullish news was that numerous Northeastern U.S. residents were replacing vehicles damaged by Super Storm Sandy. (Bloomberg)
Good news for the U.S. today also consisted of jobless claims falling by 29,000K.
It is yet very evident that consumer sentiment and traders sentiment is bearish for the U.S. Dollar in result of the fiscal cliff. Deals are not being reached at the White House and recent reports tell us that the White House is expected to still be working on the Fiscal Cliff decision after Christmas.
Beohner is talking spending, Obama is talking taxes. Two different wave lengths. It’s like oil and water. Wisdom and folly. The challenge is for some kind of middle ground to be met. The
President along with numerous supporters wish to see tax increases on the wealthy. To read more thoughts about taxing the wealthy, visit this article.
Yesterday, in Bernanke’s press conference, he warned that “very significant adverse effects on the economy and on the employment rate” could take place if the fiscal cliff occurs. He also said they could “increase a bit”, their stimulus. Bernanke also made it clear that the Fed cannot solve the fiscal cliff: “we can not offset the full impact of the fiscal cliff”.
When the fundamental signs, sentiment, and technical signs all match up. Watch out! The U.S. Economy is looking very ugly and the dollar will follow, even if risk aversion precedes it.
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