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.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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