"The US dollar remained in a consolidation phase on Thursday, holding close to multi-week highs. Inflation data released on Wednesday painted a broadly stable picture. Producer prices increased moderately on the month. Taken together with earlier CPI data, inflation trends appear neither re-accelerating nor cooling decisively. Retail sales provided a contrasting signal, rebounding strongly in November. Improved consumer spending, suggesting household demand remains relatively healthy, limiting immediate downside risks to growth."
"Minneapolis Fed President Neel Kashkari noted that there was no need to cut rates soon, given the resilient labour market and an inflation rate above target. This reinforces the current wait-and-see approach and provides support to both the greenback and yields. At the same time, Fed independence concerns remain a risk for the currency, although recent remarks from Trump helped ease immediate fears by signalling no imminent move to remove Powell."
The US dollar traded in a consolidation phase near multi-week highs amid mixed economic signals. Inflation data showed a broadly stable picture, with producer prices rising moderately and CPI trends neither re-accelerating nor cooling decisively. Retail sales rebounded strongly in November, indicating relatively healthy household demand and limiting near-term downside risks to growth. Minneapolis Fed President Neel Kashkari said there was no need to cut rates soon given a resilient labour market and inflation above target, reinforcing a wait-and-see stance and supporting the dollar and yields. Fed independence concerns pose a potential risk; jobless claims and further Fed speeches will be watched closely.
Read at London Business News | Londonlovesbusiness.com
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