US Dollar Index Fell on Weak Economic Data



US Dollar Index fell by nearly 1%

The US Dollar Index fell to 93.8 before closing October 14, 2015. It was almost 1% below the opening level of ~94.8 at ~93.9. The fall was mainly attributed to the release of weak domestic data in the form of the PPI (Producers Price Index) and retail sales. This was the biggest intraday fall in nearly a month. The core CPI (consumer price index) and labor data come on October 15, 2015. This will give more direction to the US Dollar Index.

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PPI and retail sales fell below expectations

The U.S. Bureau of Labor Statistics published the PPI for the month of September on October 14, 2015. The month-over-month PPI fell by 0.5% in September. This was below the market expectation of a 0.2% fall. The fall in energy prices by 5.9% was the major negative driver in September. The YoY (year-over-year) PPI fell by 1.1%. The retail sales for September came out on October 14, 2015. There was a month-over-month rise of 0.1% in retail sales while the market expectation rose 0.2%. The motor vehicles and parts dealers rose by 8.8% on a YoY basis.

Impact on the market

On October 14, 2015, following the release of retail sales data, the SPDR S&P Retail ETF (XRT) fell by 0.97%. Also, the VanEck Vectors Retail ETF (RTH) fell by 2.4%.

United Parcel Service (UPS) saw a fall of 0.43% at the end of trade on October 14, 2015. FedEx (FDX) saw a fall of 0.50%. Additionally, Citigroup’s (C) stock fell by 0.96% for the day.


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