The volume of retail sales in the US dropped by 0.3%, and core sales remained flat. Retail sales were expected to slide by 0.2%, while core sales were predicted to rise by 0.2%. Both figures rose by 1.1% last month according to the initial report. These numbers were now revised to the upside: with +1.3% in retail sales and +1.2% in core sales. Sandy had an effect, but it’s unclear if it was more negative or positive.
All in all, the numbers are a bit disappointing, but the margin isn’t that big. EUR/USD traded around 1.2740 before the publication and is now on the rise. USD/JPY was on a roll prior to the release, crossing the 80 line. It remains steady.
Producer Prices fell by 0.2%, the same as core prices. PPI was expected to show a rise of 0.2% after a leap of 1.1% last month, and core PPI to move up by 0.1% after remaining flat last month. The PPI numbers are therefore below expectations as well.
The main economic topic in the US is the fiscal cliff. US president Barack Obama will give a speech later in the day, and negotiations between the big parties are due to officially begin on Friday.
Here is all you need to know about the fiscal cliff.
