US Industrial Production Plunges, CPI, Retail Sales are OK

US industrial output plunged by 1.2%, far worse than a rise of 0.1% that was predicted. Last month saw a rise of 0.6%. The US manufacturing sector is wallowing in the mire. Retail sales and CPI were generally OK, a bit above expectations. They continue the general picture of mediocre growth. For stopping QE3, the figures are already too late.

EUR/USD continued higher but could not conquer 1.31 so far. USD/JPY is enjoying a side effect in QE3 – higher US yields on the long end of the curve, and is above 78.

The volume of retail sales in the US rose by 0.9% in August, above expectations of 0.7%. However, this came on top of a downwards revision of 0.6% for June. A similar pattern was seen in the previous month.  Core retail sales rose by 0.8%, above expectations of +0.7%.

The Consumer Price Index rose by a strong 0.6%, above 0.5% that was predicted. Most of the rise was associated with gasoline prices. On the other hand, CPI edged up only by 0.1%, below +0.2% that was expected, and as seen in the previous month.

One more important US indicator is awaiting: consumer confidence of the University of Michigan, due at 13:55 GMT. See how to trade this event with USD/JPY.