MARKETS & FX
US May Retail Sales Up 0.9% as Consumer Spending Holds Firm
# US retail# consumer spending# rate expectations
Key Points
- US May retail sales rose 0.9% month on month, with consumer spending firm.
- Resilient spending reinforces expectations of a Fed hike this year.
- It moves the dollar, the yen and global risk assets.
Analysis
US May retail sales rose 0.9% month on month, showing firm consumer spending. Resilience cuts both ways: good for the economy but stickier for inflation, reinforcing expectations of a Fed hike this year, the key driver lifting the dollar and pressuring the yen lately. For Taiwan readers, US spending data is now a forward indicator for the yen and global flows, the stronger US consumption, the higher hike expectations, and the more the FX and stock chain reactions bear watching.