US retail sales grew by 0.4%. Core sales rose by 0.7%. Early expectations stood on a rise of 0.8% in the headline figure and 0.6% in core retail sales.
The bottom line is a small disappointment. EUR/USD falls after the release. USD/JPY ticks a bit lower. This is risk averse behavior, yet the scale is limited, at least for now.
Last month’s numbers were revised to the downside. Sales in December are now unchanged, down from a rise of 0.1%. The drop in core retail sales was revised to -0.5%, from 0.2% originally reported.
This is an important consumer indicator. December is a sales season. In addition, this December also saw expiry of tax incentives.
Also in the US, import prices rise by 0.3%, exactly as expected. Later in the US, Business Inventories are predicted to rise by 0.4%.
EUR/USD is mostly moving on news regarding the Greek bailout deal, which consists of the “voluntary haircut†for private bondholders (PSI). Love is limited for the euro in this Valentine’s Day.
This comes despite an improvement in German economic sentiment.
