February 12th, 2009 by Contrary to market estimates, retail sales figures for the month cut short a six month shortfall as consumers seemingly spent some hard earned cash on staple goods and gasoline. In January, sales climbed 1 percent according to the Commerce Department. Although definitely a shot of good news, positive vibes of the release will likely be short lived as the figure was supported by higher prices at the pump and reflected only deep discounts offered by retailers. With no holiday season in the near term, and no definitive up tick in the economy, consumers will likely revert to previous habits and hold cash close to home. The belief has been underscored by the recent figure showing that a whopping 4.8 million Americans are collecting unemployment benefits in the country. Further momentum for the greenback at this point will likely be muted as we head into a three day weekend bank holiday. The only release to be tapped tomorrow will be the University of Michigan’s consumer survey, an unlikely market moving event.
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