US Wholesale Inventories Dip Signals Bullish Trend for USD
As of December 2024, the trend in US wholesale inventories indicates a slight dip, which is signaling a bullish trend for the USD. This dip in inventories can be seen as a positive indicator for the US economy, as it suggests that demand is strong enough to keep inventories from accumulating excessively.In November 2024, wholesale inventories increased by 0.4% seasonally adjusted, marking their first outright increase since November 2022. This increase suggests that businesses are stocking up in anticipation of higher demand, which is a bullish sign for the USD. Additionally, the third quarter of 2024 saw a 3.1% annual rate increase in real gross domestic product (GDP), with inventories contributing 1.7 percentage points to this growth. This significant contribution of inventories to GDP growth underscores their role in driving economic expansion.Moreover, the recent report indicating a 0.2% dip in wholesale inventories in September 2024, following a 0.2% rise in August, reflects a stabilizing trend. This stability in inventory levels, despite a slight dip, is often interpreted as a sign of a healthy and growing economy, which supports a bullish outlook for the USD.In summary, the recent trends in US wholesale inventories, including a slight dip in September and a modest increase in November, signal a bullish trend for the USD. These movements indicate strong demand and economic activity, which are positive indicators for the currency's strength.
