US Dollar: Support holds on US data – Societe Generale

Headline US CPI has risen 1% over two months. With core CPI also increasing steadily and payrolls, retail sales and GDP showing strength, Societe Generale’s Kit Juckes argues that current data point to a resilient US economy, despite the prospect of future US fiscal tightening and increased AI regulation.

1% CPI Rise: Resilient Data Support US Currency

"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.)