Consumers pull back as Covid continues to surge
|U.S. Review
Consumers Pull Back as COVID Continues to Surge
- Retail sales fell 0.7% in December, the third straight monthly decline. Sales are still up 2.9% over the year, however.
- The CPI advanced 0.4% in December (1.4% over the year). Inflation remains tepid, with core prices up 0.1% in the month.
- Initial jobless claims jumped to 965K (week end Jan. 9).
- Several Fed officials pushed back on the idea of a shift in monetary policy anytime soon.
- Industrial production rose 1.6%inDecember.
- Small business optimism (NFIB)dropped to 95.9 in December. Consumer sentiment (U. Michigan) slipped to 79.2 in January.
Global Review
International Data Mixed Over the Week
Brazilian inflation surprised to the upside in December, rising 4.5% year-over-year. Brazil’s inflation has been steadily increasing since May amid lower interest rates, additional fiscal spending and a weaker exchange rate.
Norwegian mainland output fell less than expected in November, suggesting risks to our Q4 GDP growth forecast are tilted toward the upside. Meanwhile, Norway’s inflation recovered in line with consensus estimates in December.
Elsewhere, Peru’s central bank opted to continue its expansionary policy stance, holding its reference rate at 0.25% and indicated it is ready to increase stimulus if needed.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.