U.S. retail sales data better than expected, market awaits rate cut

The December 17th Golden Ten data shows that November US retail sales exceeded expectations, indicating that consumers are willing to spend heavily at the start of the holiday season. Retail sales in November rose by 0.7% compared to October, better than the expected rise of 0.5% by economists; sales rose by 3.8% year-on-year. The November retail sales report will help the Fed decide whether to cut interest rates later this week. Recent economic data, including last week’s CPI, gives investors no reason to doubt another rate cut at the Fed’s meeting this week. According to the CME FedWatch Tool, traders believe there is a 99.1% chance of a 25 basis point rate cut by the Fed.