US retail sales data released at 1:30 pm GMT was a key point in today's economic calendar. Moods on the markets deteriorated ahead of the reading with US futures dropping below overnight lows. However, the release did little to change the situation with reports showing massive disappointments in all metrics.
US retail sales report for December
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app-
Headline: -1.9% MoM vs 0.0% MoM expected (previous: 0.3% MoM)
-
Ex-autos: -2.3% MoM vs 0.2% MoM expected (previous: 0.3% MoM)
-
Ex-autos and gas: -2.5% MoM vs -0.2% MoM expected (previous: 0.2% MoM)
-
Control group: -3.1% MoM vs 0.0% MoM expected (previous: -0.1% MoM)
Such a weak report for December, a month usually marked with strong holiday sales, shows that elevated inflation may be hitting US consumers. This will be an important factor for Fed to assess whether quick actions aimed at bringing down price growth are needed. It looks like they are and Fed members may become even more hawkish now.
US index futures dipped following release of US retail sales data. US dollar also dropped in a knee-jerk move but managed to recover later on and is now trading above pre-release levels against major peers.
USDJPY dipped following release of the US retail sales data. However, weakness was short-lived and the pair started to regain ground. Question remains whether it manages to climb back above a short-term support at 113.70. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
