BREAKING - US CORE RETAIL SALES COME LOWER, AND THIS WILL CONTINUE TO DRAG THE USD LOWER

US Economic Indicators Point to Shifting Dynamics: An Overview

Greetings, traders! As we near the end of another dynamic week, let's dive into the intriguing happenings within the US economy. It's been an eventful ride, notably marked by the recent US CPI (Consumer Price Index) announcement. If you haven't caught up on this development, take a moment to check out our channel for comprehensive insights.

Today, I want to delve deeper into the core retail sales, retail sales, and the PPI (Producer Price Index) data released at 12:30 a.m. Sydney time. The PPI is a pivotal metric that gauges inflation's impact on producers, indicating the price variations in materials used for goods production. The latest figures reflected a month-on-month increase of 0.5%, slightly lower than the anticipated 1% consensus but notably lower than the previous 4%.

What's fascinating is the intrinsic link between PPI and CPI. When producers face increased inflation, this often translates to consumer price hikes. In this case, both the PPI and CPI showed a downward trend, signifying a reduction in inflationary pressure on the US economy.

Additionally, the retail sales figures provided an interesting perspective. While still residing in the negative territory, the retail sales showcased a less-than-expected decline of 0.1%, hinting at a potential shift towards positivity in the retail sector.

These patterns aren't coincidental. Reduced inflation meant lower prices for consumers and producers, influencing increased retail sales. It's a promising indication of the US economy heading in the right direction. Yet, we must analyze more data to understand the trajectory in this quarter's closing stages.

I've been perusing recent research, notably from MUFG, echoing sentiments about the US dollar's declining strength. Their observations align with other banking entities, hinting at a possible extension of this trend.

Stay tuned for deeper insights into these macroeconomic shifts in our upcoming webinar next Tuesday from 6 to 7 p.m. I'll be conducting an exclusive session on how to create your own Commitments of Traders and efficiently use this data in your Excel spreadsheets.

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