Euro Fails to Maintain Gains from Improved German Retail Sales
THE TAKEAWAY: German retail sales rise an unexpected 0.4% in February -> Bundesbank expects economic growth in Q1 -> Euro fails to maintain gains
German retail sales grew 0.4% in February, beating expectations for sales to decline 0.6% and slowing down from the revised 3.0% rise in retail sales in January. Retail sales slowed 2.2% from February 2012, according to the German Federal Statistical Office.
The German economy declined 0.6% in Q4 2012, but the Bundesbank predicted in February that the German economy will return to growth in the current quarter on improved industrial production. Germany is the biggest and one of the strongest economies in the Euro-zone, and signs of improved growth in Germany is positive for the entire Euro-zone, and therefore Euro positive.
The Euro improved slightly on the better than expected growth in retail sales, but the gains were short lived as EUR/USD fell back below 1.2800 shortly after the release. A broken support line around 1.2820 may provide resistance, and the 1.2700 level may continue to provide support.
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EURUSD Daily: March 28, 2013
Chart created by Benjamin Spier using Marketscope 2.0
-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to firstname.lastname@example.org .
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