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USD Under Pressure by Inflation Drop. Focus on Retail Sales Data

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USD Under Pressure by Inflation Drop. Focus on Retail Sales Data



The USD was weaker against other major currencies following the US’s October inflation rate drop. Traders also priced in the possibility that the Federal Reserve would increase its interest rates slightly. The market might be getting ahead of itself however, given the Fed’s hawkish rhetoric and reluctance to ease monetary tightening too quickly.

On Wednesday, the next market-moving event in USD will be Retail Sales for October. The consensus in the market is that sales will increase by 1 percentage points, as opposed to 0 percent in September.

Will the results support or add resistance to the USD’s course? The USD is still quite high compared to other currencies, such as the EUR and GBP at the time. However, there is room for USD to move if there is any surprise in the Retail Sales figures.

When it comes to the Yen currency crosses, the latest data to be priced into the currency’s value is Japan’s preliminary growth rate for the third quarter. The quarter-on–quarter results were lower than expected at minus 0.3%, compared with 1.1 percent previously and the consensus of 0.3%). On an annualized basis, Japan’s Q3 growth was at the level of minus 1.2 percent compared…



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