Forex: U.S. November Business Inventories Rose As Expected; USD/JPY Neutral
THE TAKEAWAY: [U.S. business inventories in November increased 0.3 percent as expected] > [Companies kept stockpiles in line with growing demand] > [USD/JPY mixed]
U.S. business inventories in November grew for the fourteenth straight month, at the same pace as expected. The Commerce Department reported in Washington today that stockpiles rose 0.3 percent in November, following a downwardly revised 0.3 percent gain in previous month. The median forecast of 44 economists surveyed by Bloomberg News had projected a 0.3 percent increase in inventories. Meanwhile, sales climbed 1.0 percent after dropping 0.3 percent in October.
In specific, inventories in Wholesalers accounting for about 30 percent of all business inventories rose 0.6 percent in November, while retailers’ stockpiles increased 0.3 percent matching gain in sales. Manufacturing inventories remained unchanged compared with the month before. The readings reported by the Commerce Department indicate that companies have kept stockpiles in line with improving demand. However, at the same time, businesses are likely to remain cautious amid concerns about the ongoing dispute on the debt ceiling which threatened to cut spending and shut down part of the government.
Chart created using Market Scope – Prepared by Renee Mu
The U.S. dollar was mixed in the minute after the Business Inventories released. At the time this report was written, the USD/JPY pair traded at 88.93 yen.
--- Written by Renee Mu DailyFX Research
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