USD Steady as US Business Inventories Miss Expectations at +0.1%

The US dollar saw limited reaction following the release of November business inventories data, which came in at +0.1% versus the +0.2% consensus expectation and well below the prior month's +0.3% reading. Total business inventories stood at $2,678.3 billion, while the inventory-to-sales ratio declined to 1.37 from 1.40 previously, suggesting improving sales relative to stock levels. Retail inventories excluding autos matched expectations at +0.2%. The softer inventory build aligns with broader concerns about tariff-related disruptions to the trade balance, which analysts suggest could act as a drag on inventory accumulation going forward. This dynamic is expected to offset the positive GDP impact from an improving trade balance, as businesses may front-load imports or reduce stockpiling depending on trade policy developments. Wholesale inventories rose 0.2% in October, indicating a gradual moderation in restocking activity. For USD traders, the data adds a mildly bearish undertone, though the impact remains limited without stronger catalysts from upcoming employment or inflation releases.