The Dollar rebound after Retail sales and Producer Price Index well exceeded economist forecast suggesting that US Economy is not turning into recession.
The Core Retail Sales reported 1.8% growth on November against 0.4% in October and Producer Price Index reported 3.2% increased against 0.1% in October. Both reports are important indicators to measure inflation number. Some economist believes that 100bp cut since September this year has started to eased consumer spending pressure. The Dollar has strengthen against all major after the report especially against EURO and Sterling.
We believes that the Dollar will further strengthen towards $1.45/Euro in near terms. Tomorrow headline will be core CPI release at 8.30EST and Industrial Production at 9.15EST. A strong CPI will further boost Dollar correction move.
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