Focus On US Retail Sales Data This Week
The U.S. dollar showed its best week in almost five months against major peers last week, amid bets for earlier Federal Reserve interest rate hikes after data this week showed the fastest U.S. inflation in three decades.
The U.S. consumer price index surged 6.2% on an annual basis, with gasoline leading a broad-based increase that added to signs that inflation could stay uncomfortably high well into 2022 amid snarled global supply chains.
Moreover, last week U.S. data showed that the producer price index (PPI) grew 0.6% month-on-month and 8.6% year-on-year. The core PPI grew 0.4% month-on-month.
Looking ahead, the US Commerce Department will report October retail sales numbers on Tuesday. Economists predict that retail sales rose by 1.1% last month. On the other hand, Core retail sales, which exclude autos, are expected to have risen by 0.8%. A higher-than-expected reading should be taken as positive for the greenback.
US Housing Starts will be announced Wednesday and it is a critical indicator of economic strength in the US. The market expects housing starts to rise to 1.580 mln from 1.555 mln.
US Building Permits as another key indicator of demand in the housing market measure the change in the number of new building permits issued by the government. It is expected to come out at 1.630 mln in October.
If we look at the Eurozone, we will closely watch the EU Consumer Price Index on Tuesday. On a year-on-year basis, the CPI is expected to be at 4.1%.
On Friday, ECB President Lagarde will deliver opening remarks at the Frankfurt European Banking Congress.
15 Nov 21 (Mon)
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