Market Looks Ahead On Employment Concerns (page 2 of 2)

However, remaining a thorn in King's side looks to be continued melancholy in the consumer sector. In accordance with yesterday's CBI trends survey, retail sales figures have remained pessimistic, even plummeting 1.6 percent in the monthly comparison in January. As a result, further pound downside could ensue if consumption weakness continues as the overall economy is sure to feel the effects of lackluster demand. The end all would prompt central bankers to intervene, ultimately lowering rates to snare individuals.

Japanese Yen

Completely disappointing the market, industrial production declined more than expected in the world's second largest economy. For the month of February, preliminary reports point to a 1.7 percent slowdown for the month versus a pickup of 0.4 percent seen in the previous period. Subsequently, this forces the annualized figure lower and conflicts greatly with the optimistic retail figures that we saw yesterday.

However, with the figure showing six consecutive months of higher output, the dip may be considered a simple pullback before further advancement continues. Further repatriation was seen on the day as traders fought on both sides as the currency pair remained relatively near the close yesterday in New York.

Notably, the current environment looks to persist into tomorrow as voting on the Schumer/Graham bill has also been delayed till September. The delay is likely to fill the market with even more speculation during the coming months as comments on both sides of the Pacific are surely to follow.