THE TAKEAWAY: German retail sales rise 1.5% in September -> Retail sales indicate a possible rebound -> Euro trading steady
In forex news, German retail sales rose by the fastest pace in over a year, possibly indicating a rebound in the suffering German economy. Retail sales were up 1.5% (real) in the month of September and way higher than the expected 0.3% rise or August’s 0.1% rise in retail sales. However, retail sales were 3.1% lower than September 2011, according to German Federal Statistics Office.
The drastic drop in sales from September of last year is partially due to the fact that there was one more shopping day in the month in 2011. However, the year over year comparison also attests to the struggling German economy, which only expanded 0.3% in Q2. Therefore, the monthly rise could be a sign of improvement in Europe’s biggest economy and therefore possibly Euro positive.
In forex markets, the Euro did not react to the positive retail sales. EURUSD is currently trading around 1.2958, possible resistance could be found by the 1.3000 key level.
EURUSD 15-minute: October 2, 2012
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