Retail sales in the U.S. increased by 0.1% in August 2024, surpassing expectations of a 0.2% decline. Additionally, July figures were revised upward, showing a 1.1% increase. These data suggest that consumer spending remains relatively robust, despite global economic uncertainties.
Meanwhile, industrial production in the U.S. rose by 0.8% in August, the largest increase in six months and significantly exceeding market expectations of a 0.2% rise. Manufacturing output, which accounts for 78% of total production, grew by 0.9%.
These positive economic indicators have eased the pressures that had built up on the dollar, especially after the likelihood of a 'jumbo' 50 basis point rate cut by the Federal Reserve (Fed) increased.
If the Fed signals a more aggressive stance on monetary easing, we could expect possible further weakness in the USD. On the other hand, if it adopts a more cautious approach, the dollar could find some additional support.
Collection
[
|
...
]