US Dollar: Support Holds Firm on US Data – Societe Generale

Resilient US economic data underpin support for the US currency, with Societe Generale’s Kit Juckes pointing to the economy’s strength despite the prospect of fiscal tightening and increased AI regulation. Alongside robust payrolls, retail sales and GDP figures, core CPI has continued to rise steadily, while headline CPI has increased by 1% over two months.

Can Resilient US Data Keep Supporting the Dollar?

"It is possible, though by no means certain, that US fiscal policy will be tightened as the President and Congress struggle to reach agreement, and it is widely assumed that the AI industry will face greater Congressional scrutiny."

"Over the past two months, core CPI has risen by 0.3% month-on-month in each release, while headline CPI has increased by 1% over the same period."

"A large upside surprise in payroll growth is probably more noise than substance, but we have also seen stronger-than-expected retail sales and GDP data."

"The bottom line is that there may be storm clouds gathering beyond the horizon, but for now the US economy continues to outperform most others."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)