Important Note!
We use cookies to ensure you get the best experience on our website.
By clicking ‘Agree,’ you accept our use of cookies as outlined in our cookies policy
14 March 2024 | FXGT.com
US Dollar strengthens following the release of PPI data & Retail Sales.
- USD Responds Positively Post-Data Release: The US Dollar found strength and traded positively after the release of US Retail Sales for February and Producer Price data, with the US Dollar Index (DXY) challenging the 103 level. The latest news has caused traders to reconsider the timing of an anticipated initial rate cut by the US Federal Reserve.
- US Producer Inflation Increases: In February, producer inflation in the US saw a year-on-year rise to 1.6%, marking an acceleration from January’s 1% increase. This exceeded market expectations of a 1.1% rise.
- Monthly Core PPI Surpasses Estimates: On a month-on-month basis, the core PPI experienced a 0.3% uptick, surpassing the predicted 0.2% rise.
- US Retail Sales Below Expectations: Retail Sales growth in the US for February was reported at a 0.6% increase, which did not meet market expectations, particularly noted was a significant demand for automobiles. When excluding auto sales, retail sales increased by 0.3%.
- US Jobless Claims Slightly Decline: In the week ending March 9, initial jobless claims in the US saw a minor reduction by 1,000, totalling 209,000, below market expectations which predicted 218,000.
- Upcoming Economic Indicators: Traders are now looking forward to Friday’s release of Industrial Production and University of Michigan sentiment numbers.
- Federal Reserve’s Interest Rate Decision: Next week holds significant interest for the US Dollar, with the Federal Reserve’s interest rate decision being a focal point. Market participants will closely monitor for any indications regarding the future direction of monetary policy.
- The Importance of the New Dot Plot: Alongside the interest rate decision, the release of the new dot plot will be crucial. This document provides projections for future interest rates and will be scrutinized for any changes from the last update in December, which suggested up to three rate cuts could occur within the year.
Disclaimer: Any material and information included herein are intended for general marketing purposes only and does not constitute investment advice or recommendation nor an invitation to acquire any financial instrument and/or be involved in any financial transaction. The investor is solely responsible for the risk of his investment decisions and if considers appropriate, he should seek relevant independent professional advice before making any decision. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. Please read full Non-Independent Investment Research Disclaimer here.
Risk Disclosure: CFDs are complex instruments and carry a high level of risk of losing money. Read full Risk Disclosure here .
Related articles
Fundamental Analysis22 April 2025
Bitcoin Rallies as Trump Turns Up Heat on the Fed
Last week, financial markets were rocked by...
Read more
Fundamental Analysis18 April 2025
Tariffs, Rate Cuts, and a Rally: EURUSD Climbs Amid Fragile Optimism
As global markets digest another wave of monetary ...
Read more
Market Analysis16 April 2025
Data-Heavy Week Tests GBPUSD Bullish Trend Amid Global Headwinds
A series of high-impact events this...
Read more
Fundamental Analysis15 April 2025
Gold in the Spotlight: Safe Haven Soars Amid Tariffs and Tensions
As global trade tensions escalate under President ...
Read more
Get the FXGT App
