Published: Sat, July 15, 2017
Economy | By Annette Adams

June US retail sales -0.2% vs +0.1% m/m expected

June US retail sales -0.2% vs +0.1% m/m expected

Instead, it stayed flat, and the inflation rate over the past 12 months moved further away from the Fed's 2% target, falling to 1.6% from 1.9% in May. Food and beverage stores were down 0.4%, department stores were down 0.7% and restaurant sales were down 0.6%.

Consumer Price Index (CPI), a main gauge of inflation, was unchanged on a seasonally adjusted basis in June, compared to 0.1 percent decrease in the previous month, said the Labor Department on Friday.

Food prices were unchanged on the month while energy prices fell 1.6% with a fifth successive decline in fuel oil prices.

TOKYO, July 14 (Reuters) - The dollar was little changed against a group of peers early on Friday, as currency investors remained cautious ahead of USA inflation data due later in the session, which is expected to set the greenback's near-term direction. Overall retail sales fell 0.2 per cent for the month to US$473.5 billion (S$651.7 billion), a surprise to analysts who had forecast a 0.1 per cent rise. Inventories are expected to rise by 0.2%. The negative momentum following Fed Chair Janet Yellen's dovish remarks in her two-day testimony to Congress deepened today. It is also benefiting from U.S. dollar weakness as signs the Federal Reserve will pursue only a gradual rate tightening path weigh on the greenback after Senate testimony from Federal Reserve chair Janet Yellen.

Few economists expect a rate increase at the Fed's meeting this month - and markets aren't looking for a third and final hike of 2017 until December - but some think the central bank could announce a start date for unwinding its $4.5-trillion balance sheet in July.

Dallas Fed President Robert Kaplan also adopted a cautious stance on recent slowdown in U.S inflation and called for a gradual removal of policy accommodation in future.

"We need inflation more than anything else". Against the yen, the greenback rose.

Borkin said if the numbers show an "inching higher" from an underlying and core perspective the market will be happy to continue to price in hikes and keep the NZD supported but "if its weaker across the board, you'll see the kiwi follow suit", he said.

Other than the yen, the dollar was on the gaining side with the rest of the major currencies including a 0.2 boost to 0.9695 against the Swiss franc. Year-on-year, production advanced 6.5%.

After surprisingly weak CPI inflation data, the dollar index sank to a new low of 95.186 Friday, the lowest since September of past year. The British pound gained significantly relative to the greenback, moving up by 1.11% to climb above the $1.30 level.

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