Summary:
- September retail sales come in well below expectations
- US dollar dips on the data, but quickly reverses its losses
- Rate cut odds may climb before Fed October meeting
US headline retail sales slumped 0.3% month on month in September, falling short of the median estimate of a 0.3% increase. Core sales, ex auto, dipped 0.1% while the median Bloomberg estimate had called for a 0.2% pick-up. On the other hand, we were also offered upward revisions to the August numbers - this has offset bearish tone to some extent. The US dollar has moved down in a knee-jerk move while the USDJPY keeps hovering around the important trend line.
The USDJPY keeps dancing around the crucial trend line following the disappointing retail sales release. Source: xStation5
