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12:36 PM · 17 August 2022

BREAKING: US dollar strengthens after retail sales data

EUR/USD
Forex
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US retail sales data for July was released at 1:30 pm BST.  Report turned out to be mixed and caused some moves on the markets. Highlights of the report:

• Headline: 0.0% MoM vs 0.1% MoM expected (1.0% MoM previous)

• Ex-autos: 0.4% MoM vs -0.1% MoM expected (1.0% MoM previous)

Report showed that inflation eased slightly but remained high in July. Sales at nonstore retailers jumped 2.7% boosted in large part by Amazon’s Prime Day event on July 12 and 13. Increases were also recorded for building material & garden eq. & supplies dealers (1.5%), miscellaneous store retailers (1.5%). On the other hand, sales at gasoline stations tumbled 1.8% as the gasoline price index tumbled 7.7%. Declines were also seen for motor vehicle & parts dealers (-1.6%) and at department stores (-0.5%). Excluding gasoline stations, sales rose 0.2%.

EURUSD is trading lower today and today’s data provided more fuel for bears. The main currency pair may be heading towards support zone in the 1.0125 area. Source: xStation5

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