The US consumer is alive and kicking despite the expiration of the payrolls tax cut. Both headline and core figures exceeded expectations.
The dollar is strengthening on this news and EUR/USD finally broke below the triple bottom of 1.2960, now trading at 1.2933 – updates coming —
US retail sales rose by 1.1%, in February, more than double the early expectations of +0.5%. This came on top of an upwards revision to last month’s figure: +0.2% instead of +0.1%.
Core sales also exceeded expectations by rising +0.4% instead of +0.2%. Also US import prices exceeded expectations rising 1.1% instead of 0.5% that was predicted. Business inventories rose by 1%, more than 0.5% that was estimated.
EUR/USD lost the 1.2960 line, that was guarded successfully for the last time after the Non-Farm Payrolls on Friday. The trough so far was 1.2929. The next support line is 1.2880, followed by 1.2805.
1.2960 switches positions to resistance. For more on the euro, see the EURUSD forecast.Get the 5 most predictable currency pairs