US retail sales dropped by 0.2% and core sales by 0.4%. This is lower than expectations. Retail sales were expected to dip by 0.1% after a rise of the same scale last month, now revised down to -0.2%. Core sales were expected to rise by 0.1%. Last month saw a dip of 0.3% (revised down from -0.1%).
This continues the series of mostly disappointing numbers from the US. However, it doesn’t seem sufficient to push the Fed into action regarding QE3.
The producer price index took a dive of 1%, thanks to oil prices. Core CCPI rose by 0.2%. PPI carried expectations for a significant drop of 0.6%, while core producer prices were expected to copy last month’s rise of 0.2%.
EUR/USD was trying to break above 1.2540 earlier, but without success. Tension towards the Greek elections is somewhat paralyzing the markets after the Spanish roller coaster.
USD/JPY slid lower within a limited range and fell under 79.60.
For more on the euro, see the EUR/USD forecast.
