Harvey and Irma Push Up Inflation and Retail Sales

Wells Fargo Research Team Wells Fargo

U.S. Review

Harvey and Irma Push Up Inflation and Retail Sales

Higher gasoline prices and replacing storm-damaged property put upward pressure on the CPI and retail sales in September. Core CPI came in softer than expected, which does little to clarify the underlying inflation trend the Fed is seeking.
Small business owners were hit by the storms as well, but small business optimism remains strong despite contending with increasing difficulty finding qualified workers. JOLTS data in August confirmed that demand for labor is strong and September’s slip in payrolls is likely to reverse easily.

Global Review

Global Growth Appears to Have Been Solid in Q3

Real GDP growth in Singapore, an important bellwether for global economic growth, strengthened to a three-year high in the third quarter. It appears that the British economy continued to expand at a modest pace in Q3, and real GDP growth in the Eurozone remained solid.
On balance, global economic growth appears to have strengthened recently. However, the modest downshift in economic momentum that appears to be underway in China is a reminder that the global economy is not exactly “booming” yet either.

Download the full report

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD off highs, back to 1.1850

EUR/USD loses some upside momentum, returning to the 1.1850 region amid humble losses. The pair’s slight decline comes against the backdrop of a marginal advance in the US Dollar as investors continue to assess the latest US CPI readings.

GBP/USD advances to daily tops around 1.3650

GBP/USD now manages to pick up extra pace, clinching daily highs around 1.3650 and leaving behind three consecutive daily pullbacks on Friday. Cable’s improved sentiment comes on the back of the inconclusive price action of the Greenback, while recent hawkish comments from the BoE’s Pill also collaborates with the uptick.

Gold surpasses $5,000/oz, daily highs

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The yellow metal’s upside is also propped up by the lack of clear direction around the US Dollar post-US CPI release.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.