The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
American import prices tack on more than anticipated in February
In February, American import prices tacked on more than anticipated because the largest jump in the cost of capital goods since 2008 compensated a sag in petroleum prices, backing views that inflation is going to pick up in 2018.
On Thursday, the Labor Department told that import prices rallied 0.4% the previous month after a downwardly updated 0.8% leap in January. Market experts surveyed by Reuters had predicted import prices soaring 0.2% in February after a previously posted 1% rally in January.
As a matter of fact, in the 12 months through February, having soared 3.4% for 12 months through January, import prices inched up 3.5%.
This week’s data demonstrated firm revenues in consumer as well as producer prices in January. Market experts expect inflation is going to speed up in 2018, powered by a tightening labor market, a weakening greenback as well as fiscal stimulus. By the way, inflation has managed to undershoot the Fed’s 2% objective since mid-2012.
In February, prices for imported capital goods tacked on 0.6%. It happened to be the biggest leap since April 2008 and it followed an intact outcome in January.
Prices of imported consumer goods without cars inched up 0.5%, which is the largest revenue since January 2014, having soared 0.1% in February. These price leaps probably reflected the greenback’s depreciation versus the currencies of America’s key trading partners.
These higher prices are going to filter through to consumer as well as core producer inflation. Imported petroleum prices went down 0.5%, which is the first sag for seven months, having soared 3% in January. Import prices without petroleum tacked on 0.5% after a similar jump in January.
The report also disclosed that export prices inched up 0.2% the previous month having surged 0.8% in January.
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).