The Dollar strengthened yesterday afternoon as sales at US retailers rose more than forecast last month in a broad advance after an even stronger September than initially estimated, showing consumers continue to pump up the economy.
Healthy hiring, wage growth and limited inflation are giving Americans the opportunity to spend at stores, malls and online merchants. Furniture outlets and restaurants were the only major categories registering a decline in October sales.
The Pound lost ground against its major counterparts yesterday after the UK’s inflation rate registered a surprise fall in October, although there were signs that the pressure on consumer prices is starting to build.
Consumer Prices Index (CPI) inflation fell to 0.9%, from 1% in September which was below the 1.1% predicted by economists, who said sterling's fall would push October's CPI higher.
The Office for National Statistics said factory gate prices and the costs of raw materials rose much faster in October. On Tuesday, Bank of England governor Mark Carney told the Treasury Committee that "the thinking now is that inflation is going to go above target... We see more inflation coming through in 2017-18, and then a tail in 2019".
09:30 – GBP – Average earnings index is forecast to remain at 2.3%
09:30 – GBP – Claimant count change is expected to increase to 1.9k
13:30 – USD – Producer pricing index is expected to remain at 0.3%
15:30 – USD – Crude oil inventories is forecast to fall to 0.4M