The Bureau of Labor Statistics will publish later today the inflation figures tracked by the CPI for the month of January (13:30h GMT), while the Census Bureau will release its results for Retail Sales during the same period (13:30h GMT).
What does the consensus expect?
Market consensus sees US headline consumer prices to have risen at an annualized 2.4%, while prices excluding Energy and Food costs are seen advancing 2.1% over the last twelve months.
Regarding Retail Sales, prior surveys point to a 0.1% gain on a monthly basis, while Sales stripping the Autos sector should have expanded 0.4 inter-month.
What’s the likely effect on EUR/USD?
In light of the current scenario of USD-strength, positive readings today should sustain further the upside momentum around the buck. Despite the CPI is not the preferred gauge of inflation for the Federal Reserve, a continuation of the uptrend should be seen as healthy nonetheless, collaborating with the already strong US fundamentals and adding to rising expectations of a sooner-rather-than-later rate hike by the Fed.
In this case, EUR/USD is expected to intensify its decline, which is already navigating 5-week lows, opening the door for a test of the key area in the mid-1.0400s (2015 lows) ahead of 14-year troughs in the 1.0340 region seen in early January.
US Retail Sales
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 securities. 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 Forex 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.