BREAKING: US dollar strengthens slightly after upbeat retail sales data

4:33 pm 16 November 2022

US retail sales data for October was released at 1:30 pm GMT.  Report turned out to be better than  but it did not trigger any major moves on the markets. Highlights of the report:

• Headline: 1.3% MoM vs 0.9% MoM expected (0.0% MoM previous)

• Ex-autos: 1.3% MoM vs 0.5% MoM expected (0.1% MoM previous)

• Ex-gas and autos: 0.9% MoM vs 0.2% MoM expected (0.3% MoM previous)

Auto sales were up 1.3% as supply chain constraints have been easing while rising gasoline costs pushed sales at gasoline stations 4.1% higher. Other increases were also seen for food services and drinking places (1.6%); food and beverages stores (1.4%); nonstore retailers (1.2%); furniture (1.1%); building materials (1.1%); and health and personal care (0.5%). Retail sales aren’t adjusted for inflation. October data pointed to resilient consumer spending, despite high inflation and rising borrowing costs hit consumer demand, according to  U.S. Census Bureau

US retail sales recorded the sharpest jump since February 2022. Source: Bloomberg

In nominal terms, US Retail Sales still remain strong, rising 7.5% over the last year & hitting a new high in October, however after adjusting for inflation, things look different. Real Retail Sales reached high in March 2021 & are down 0.3% over the last year. Source: Compound@ Charlie Bilello / Ycharts

Retail sales expanded at a faster rate than expected in October, partially due to the impact of California stimulus checks, nevertheless today's reading suggests some resilience in household spending despite the slowing economy. Still, money markets point to a broad consensus that the Fed will slow the pace of its rate hikes in December as both consumer and producer inflation were below expectations for October.

EURUSD saw a relatively small reaction to today’s data releases. The most popular currency pair continued to trade around 1.0400 level. Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.