Markets are currently awaiting US Retail Sales data to be released at 16:30 Dubai time. The index measures the change in sales at the retail level and represents half of total consumer spending. The data will also give investors a better picture of US inflation, which largely affects the monetary policy decisions of the US Federal Reserve. Consumer prices released last Wednesday were higher than expected. It indicated that inflation is still firmly rooted in the economy and far from the central bank's target of around 2%.
This data release is considered one of the most important data points that the Fed looks toward before making it monetary policy decisions. According to the official statements by the Fed, any decision related to monetary policy will depend on the economic data. After the rise in job data and a higher-than-expected inflation rate, will today’s Retail Sales data raise the chances of an interest rate hike in the Fed’s next policy meeting on November 1st?
Expectations indicate that monthly Core Retail Sales declined to 0.3% compared to 0.6% in the previous reading. If these expectations are correct, this would suggest a decline in sales, which according to analysts, could negatively affect the US Dollar, while positively benefiting gold and stocks.
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