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Dollar Falls After Retail Sales
Friday, 14 February 2025 20:57 WIB | US DOLLAR |DOLLAR

The dollar index fell to 106.8 on Friday after much weaker-than-expected retail sales figures raised concerns about the strength of the consumer spending.

Retail sales declined 0.9% last month, compared to forecasts of a smaller 0.1% fall and the control sales which is used to calculate GDP declined 0.8%, although consumer spending was likely hit by harsh weather and wildfires in LA.

Meanwhile, both CPI and PPI exceeded forecasts, though the PPI components feeding into the PCE index, the Fed's preferred inflation gauge, showed signs of cooling.

The data has reinforced the Fed's cautious stance on rate cuts, with Chair Powell emphasizing before Congress that the central bank is in no hurry to ease policy.

On the trade front, Trump signed a directive instructing the US Trade Representative and Commerce Secretary to propose new country-specific tariffs, a process that could take weeks or months. Investors await further details and remain hopeful that negotiations could avert the levies.

Source: Trading Economics

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