Euro Extends Gains Following Strong German Retail Sales Report
- German Retail Sales Rose 2.5% m/m in Jan vs. 2.1% in Dec
- Euro Rose vs. the US Dollar After the Data Crossed the Wires
- Traders’ Focus Turns to Eurozone CPI Print Later Today
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German consumers’ appetite for shopping firmed in January as retail sales rose 2.5 percent, producing the largest monthly increase since February 2007 and surpassing estimates calling for 1 percent gain. On a year-on-year basis, retail spending rose 0.9 percent beating estimates calling for a decline of 1.7 percent.
The Euro resumed yesterday’s advance against the US Dollar following the upbeat report, but follow-through may prove lacking as traders continue to focus on the implications of lingering disinflation on European Central Bank Monetary (ECB) policy. That puts the spotlight on February’s flash Eurozone CPI print later today. A soft outcome mirroring yesterday’s analogous German CPI report may fuel bets on monetary stimulus expansion at next week’s interest rate decision, weighing on the single currency.
EUR/USD 5-Minute Chart. February 28, 2014
Charted created by David Maycotte using Marketscope 2.0.
-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to email@example.com.
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