U.S. Monthly Advance Retail Sales for July were 0.7%, higher than the 0.4% survey. Strip away automobile and gasoline sales (the more volatile components) and monthly retail sales climb to 1%. Retail Sales results were above forecasts in all categories, with some spenders still undeterred by inflationary price increases.
The U.S. dollar index is -0.12% with the USD evenly split between gains and losses vs. the G10 pairs: +0.48% vs. SEK, +0.20% vs. AUD, +0.11% vs. NOK, +0.03% vs. NZD, +0.02% vs. JPY, -0.01% vs. CAD, -0.11% vs. CHF, -0.13% vs. DKK, -0.14% vs. EUR, and -0.24% vs. GBP.
The dollar gained more ground against emerging market currencies, advancing 0.53% vs. the CNH to reach 7.3174, its highest since November 2022. The PBoC (China’s Central Bank) delivered two unexpected rate cuts overnight in an attempt to spark consumer spending. Economic data released for China showed a YoY 0.70% decline in Industrial Production and slumping Retail Sales.
Canadian CPI data released this morning for July was higher than forecast, the MoM result +0.60% (+0.30% est.), and YoY +3.30% (+3.0% est.).
Global equity indexes are mostly lower, with the S&P500 futures -0.63% and Nasdaq 100 -0.47%.
U.S. Treasury yields are mixed in minor overnight ranges.