Keep Your Eye On US CPI Inflation This Week

The US Dollar fell versus major currencies after April U.S. jobs data came in well below expectations, putting a damper on hopes that a roaring economic recovery would spur higher rates.

Nonfarm payrolls increased by 266K jobs last month after rising by 770K in March, the Labor Department said in its closely watched employment report. That's was below expectations.

Traders seem to be prepared to take the Federal Reserve at its word that stimulus tapering will not be on the agenda any time soon.

Looking ahead, we will closely watch the CPI inflation figures on Wednesday. Consumer prices are expected to have risen 0.2% last month and 3.6% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to be 2.3% on a year-over-year basis.

The US PPI is predicted to come out at 0.3% year-on-year basis. While the Core PPI inflation is expected to be 0.4%.

The US Commerce Department will report December retail sales numbers on Friday. Economists predict that retail sales rose by 0.2% last month. On the other hand, Core retail sales, which exclude autos, are expected to have risen by 0.9%. A higher than expected reading should be taken as positive for the greenback.

10 May 21 (Mon)

06:22 am