USD Retail Sales and Core CPI, How will the hurricanes aftermath affect the results?
Upcoming Retail Sales & Core CPI data today is being forecasted higher than last months 0.4% CPI with an expected jump to 0.6%, whereas retail sales are forecasted to have a much more drastic rise from the previous months -0.2% to a staggering 1.7%. The expected increase in both is being routed towards the effects of Hurricane Harvey and Irma, the results of both Hurricanes may have been drastic, but it did contribute to a huge boost in sales of consumer goods due to the anticipation of further catastrophic damage and limited availability of retail access to consumers.
Following strong PPI results just the prior day coming in as forecasted at 0.4%, a jump of 0.2% from the previous month. Investors are starting to price in the aftermath of the Hurricanes and are seeing a majority of the increases coming from auto sales and the increase of gasoline prices. We can expect this to reflect in today’s data also, potentially giving the Dollar a temporary boost amid it’s current fall in value. Whilst the impacts lingering from the storms will most likely be a temporary issue, the higher inflation figures can be expected to last several months.