US CPI and Retail Sales

David Morrison Trade Nation

There was a drop in headline CPI while the core number (including food and energy) popped higher from their respective prior readings

Both Core and Headline Retail Sales were lower than the prior month’s readings

The data has done nothing to help the dollar which is under severe pressure as we go into the weekend

The dollar has been under pressure all morning thanks mainly to news from the Euro zone. The single currency soared on news a breakthrough in talks between Chancellor Merkel and the SPD. After months of uncertainty Germany now has the prospect of a working government. This followed on from the release yesterday of euro-positive ECB minutes. The central bank was upbeat in its assessment of the Euro zone’s growth prospects and hinted that it may look to speed up the reduction of its Asset Purchase Programme.

The EURUSD has broken above resistance around 1.2100 and this has triggered a rash of dollar selling. The Dollar Index has now broken below support around 91.00 suggesting that the dollar downtrend that began this time last year could continue for some time to come.

Author

David Morrison

Trade Nation

Senior Market Analyst at Trade Nation since August 2019. David's role is to build value and growth through customer acquisition and retention via market commentaries, blogs and vlogs.

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