Retail Sales Surge in December, Dollar Index Peaks at 103.70

Explore market shifts and central bank updates—surge retail sales impact the Dollar Index, gold, currencies, and commodities. Stay informed today!

Asian Markets React to Strong US Retail Sales Data and Central Bank Announcements

In a surprising turn of events, US retail sales experienced a robust increase of 0.6% Month-over-Month (MoM) in December, surpassing the forecasted 0.4%. This surge, the highest in three months, was primarily driven by strong performances in auto sales, online retail, and clothing segments. Despite concerns about higher inflation, consumer spending in the United States demonstrated resilience, propelling the Dollar Index (DXY) to a peak of 103.70 overnight.

Asian Session Impact: Dollar Index Retreats, Gold Finds Support

As Asian markets digested the latest retail sales figures, the Dollar Index retreated from Wednesday’s high, sliding towards the 103 threshold. Spot gold prices found support around $2,000 per ounce, climbing higher. Crude oil prices rebounded overnight, reflecting the complex dynamics in global markets.

Retail Sales Surge in December, Dollar Index Peaks at 103.70

Key Developments in the Asia Session

• Dollar Index (DXY): Weak Bearish Bias
• Gold (XAU): Weak Bullish Bias
• Australian Dollar (AUD): Weak Bullish Bias
• New Zealand Dollar (NZD): Weak Bullish Bias
• Japanese Yen (JPY): Weak Bearish Bias
• Euro (EUR): Weak Bullish Bias
• Swiss Franc (CHF): Weak Bearish Bias
• Pound (GBP): Weak Bullish Bias
• Canadian Dollar (CAD): Weak Bearish Bias
• Oil: Medium Bullish Bias

Upcoming Events and Expectations

1. FOMC Member Bostic Speaks (12:30 pm GMT): Remarks on the economic outlook could impact the Dollar Index.

2. Unemployment Claims (1:30 pm GMT): Lower-than-expected claims may bolster the greenback.

3. ECB President Lagarde Speaks (3:15 pm GMT): Lagarde’s statements at the World Economic Forum may influence the Euro.

4. SNB Chairman Jordan Speaks (10:30 am GMT): Comments on monetary policy could sway the Swiss Franc.

5. EIA Crude Oil Inventories (4:00 pm GMT): Oil prices may react to the API stockpile data and OPEC’s optimistic oil demand forecast.

Central Bank Updates

• Federal Reserve: The Federal Funds Rate target remains unchanged, with the next meeting scheduled for January 30-31, 2024.
• RBA: The cash rate target in Australia remains at 4.35%. The next meeting is on February 6, 2024.
• RBNZ: The OCR in New Zealand is 5.50%, with the next meeting on February 28, 2024.
• Bank of Japan: The Bank of Japan maintains the OCR at 0.1% and has scheduled the next meeting for January 23, 2024.
• ECB: Key interest rates in the Eurozone remain unchanged. The next ECB meeting is on January 25, 2024.
• SNB: The policy rate in Switzerland remains at 1.75%, with the next meeting on March 21, 2024.
• Bank of England: The Official Bank Rate is 5.25%, with the next meeting on February 1, 2024.
• Bank of Canada: Canada’s overnight rate remains at 5.0%. The next meeting is January 24, 2024.

The global financial landscape remains dynamic as markets react to strong retail sales data and central bank updates. Investor sentiment is influenced by economic indicators, central bank decisions, and geopolitical events, creating a complex trading environment. Advisors recommend that traders remain vigilant and adapt to evolving market conditions.

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