Forex: USD/JPY falls on disappointing US consumer data

on Sep 13, 2013

**, Friday 13 September:**

The greenback shed today’s earlier gains against the yen after the release at 13.30 BST of worse-than-expected US Retail Sales for August. Month-on-month, the leading indicator of consumer spending showed growth of 0.2 percent, versus expectations for a rise of 0.5 percent following July’s 0.4 percent (revised up from 0.2 percent). And with automobile and auto-fuel sales excluded, August was only marginally up by 0.1 percent, whereas the market consensus had been for 0.3 percent, following the prior month’s 0.6 percent growth.

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Subsequently, at 14.55 BST, the preliminary current month reading of the Thomson Reuters/University of Michigan Consumer Sentiment survey checked in with the lowest level in five months at 76.8. That number was well short of estimates for an improvement to 82.6 from August’s 82.1. The UoM’s consumer confidence gauge is a leading indicator of US consumption tendencies and a proxy for the value of the greenback.
Earlier the US Producer Price Index came out as 0.3 percent up in August. The median forecast had been for growth of 0.2 percent after June’s flat reading. The higher than expected PPI rise may be a sign that disinflationary risks in the United States are on the wane.
Right now, the USD/JPY is holding around 99.35, down 0.2 percent intraday.


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