Strong US Advanced Retail Sales Data Fuels More Dollar Strength
- US Advance Retail Sales beat expectations modestly.
- Core consumption figure beats too, with positive revisions to priors.
- EURUSD falls to $1.2398 after report.
October US Advance Retail Sales beat analyst estimates of +0.2% with a headline reading of +0.3% today, helping propel the USDOLLAR Index to fresh 2014 highs. This is a large step up from the prior reading of -0.3% and, for now, assuages any lingering fears about the US economy joining much of the developed world in a period of slowing growth.
Here’s a summary of the data this morning that contributed to US Dollar price action:
- USD Advance Retail Sales (OCT): +0.3% versus +0.2% exp, from -0.3% (m/m).
- USD Retail Sales Ex Auto (OCT): +0.3% versus +0.2% exp, from -0.2% (revised to 0.0%) (m/m).
- USD Retail Sales Ex Auto and Gas (OCT): +0.6% versus +0.4% exp, from -0.1% (revised to 0.1%).
- USD Retail Sales Control Group (OCT): +0.5% versus +0.4% estimated, from -0.2% (revised to 0.0%).
EURUSD 1-minute Chart: November 14th, 2014 Intraday
Charts Created using Marketscope – prepared by Tyler Amend
EURUSD fell to a low of $1.2398 on the back of the improved US consumption data before finding support.The $1.2400 handle has proven to be the psychologically significant round number that round figures are cracked to be, having provided support on faint attempts lower over the past week. At the time this report was written, the pair had stemmed its loses and was trading at $1.2414.
--- Written by Christopher Vecchio, Currency Strategist and Tyler Amend, DailyFX Research
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