The US dollar received support. Inflation and retail sales data

The US dollar sharply strengthened its position against the basket of currencies after the publication of data on inflation and retail sales in the United States.

• According to published data, the consumer price index rose by 0.5% in January, exceeding the December growth of 0.2%. On an annualized basis, the growth rate remains at the level of 2.1%, against the forecast of 1.9%.
• The base consumer price index rose by 0.3% in January, exceeding the December growth of 0.2%. On an annualized basis, the growth rate remains at 1.8%.
• In turn, the volume of retail sales in December fell by -0.3%, against the previous value of 0.0%.

Keeping these inflation rates will put pressure on the Fed and may trigger an acceleration of tightening monetary policy.

Against the background of this statistics, the US dollar index rose to around 90.01, thereby recovering almost all the lost positions in the course of trading on Tuesday.

Fig. Graph of the US dollar index. The current price of DXY is 90.11.

Alexander Sivtsov