-11122024742.png)
-11122024742.png)
US retail sales simultaneously support stocks and the dollar
US retail sales rose 0.7% in March after a 0.9% jump (revised from 0.6%) in February. An increase of 0.4% was expected. Such strong data reverses the pattern of last month when February's growth did not outweigh January's dip. By last year, retail sales in terms of money rose 4.1%, outpacing inflation of 3.5% y/y.
Retail sales excluding autos rose 1.1%, also comfortably to a record high in money. Meanwhile, purchases of fuel and building materials remain in a downtrend from the second half of 2022.
Strong retail sales growth further placates the doves at the Fed, helping to dampen further the chances of a rate cut in the coming months. At the same time, strong selling coupled with a relatively good start to the reporting season is positive for the stock market, helping the S&P500 and Nasdaq100 bounce off their 50-day moving averages, leaving them within upward trends.
By the FxPro Analyst Team
Inflation in Focus as Traders Eye BoE’s Next Move | 22nd October 2025
EBC Markets Briefing | China's market rally is at stake this week
Weak inflation weighed on GBP, supporting the FTSE 100
Weak inflation weighed on GBP, supporting the FTSE 100
ATFX Market Outlook 22nd October 2025
Gold plummets on profit taking
EBC Markets Briefing | Loonie up on hot inflation; metal markets collapse
