Inflation and retail sales in the US exceeded expectations

• In December, growth in retail sales in the US was 0.4%, exceeding expectations at the level of 0.1%.
• The consumer price index rose by 0.1%, which is below expectations of analysts at 0.2%. In turn, on an annualized basis, the growth rate was 2.1%, exceeding the forecast at 1.9%.
• The base consumer price index rose by 0.3% in December, exceeding the forecast at 0.1%.  On an annualized basis, the growth rate is 1.8%. Which is higher than the previous value at 1.7%.

Based on this statistics, the US dollar received support, but these figures are lower than previous values, which signals about possible slowdown in the US economic growth, which is taken into account when considering the increase in the Fed’s interest rate.

Technical analysis: The pair USD/JPY is regaining positions. The main resistance levels are 111.85, 112.10. The main support levels are 111.00, 110.80.

Fig. USD/JPY. The current price is $ 111.50.

Alexander Sivtsov