Forex: EUR/USD: US retail sales up 0.2%, core at 0.7%

on Jan 14, 2014
Updated: Oct 21, 2019
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_iNVEZZ.com: Tuesday, January 14th:_ The US Census Bureau has today reported that retail sales across the country increased by 0.2 percent in December, matching forecasts. The rise was supported by holiday gift-buying during widespread seasonal discounting and the increased sales of food and beverages over the Christmas holiday. Consumers also spent more on clothing and online purchases.

Seven of the 13 major sub-categories revealed rises, with the notable example being the two percent surge at grocery and beverage stores – the largest since October 2006.
The pace of increase has been slowing since November though, when a 0.4 percent rise was logged in a revision down from 0.7. In October, sales were up 0.6 percent.
Ameriprise Financial senior economist Russell Price noted before the release that “there’s still some pent-up demand”, correctly picking consumer sentiment and confidence continuing to rebound, with “fewer headwinds now at the beginning of the year”.

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In calendar year 2013, retail sales climbed 4.2 percent y/y, following a 5.4 percent increase in 2012.
December’s core retail sales grew by 0.7 percent from a month earlier, beating expectations for a 0.4 percent rise. The prior month 0.4 percent increase was revised down to 0.1 percent jump. Core sales exclude automobiles.
Sales at auto dealers fell 1.8 percent in the month, the biggest contraction since October 2012, after a rise of 1.9 percent in the preceding month.

According to Ward’s Automotive Group, automobile purchases dropped to an annualized 15.3 million units from 16.3 million in November.

The US Bureau of Labor Statistics reported today no change in import prices in December from November, after the latter’s 0.9 percent decline m/m. Excluding fuel, prices dropped by 0.1 percent, for the first fall since August.

After release of the retail sales data, the EUR/USD at first dropped 0.15 percent to 1.3655 but recovered almost immediately to be currently at 1.3672.
According to Spain’s finance minister Luis de Guindos yesterday, the Spanish economy will likely expand by some 0.3 percent in the fourth quarter of 2013 as compared with the previous quarter, after signs that the country’s massive unemployment rate is improving at a faster rate than expected.
Spain’s economy expanded by 0.1 percent q/q in Q3, going positive for the first time after an 18 month recession.
Resistances today: 1.3690, 1.3710 and 1.3735.
Supports: 1.3670, 1.3635 and 1.3610.

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