US Retail Sales Disappoint

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US retail sales dropped by 0.2% and core sales by 0.4%. This is lower than expectations. Retail sales were expected to dip by 0.1% after a rise of the same scale last month, now revised down to -0.2%. Core sales were expected to rise by 0.1%. Last month saw a dip of 0.3% (revised down from -0.1%).

This continues the series of mostly disappointing numbers from the US. However, it doesn’t seem sufficient to push the Fed into action regarding QE3.

The producer price index took a dive of 1%, thanks to oil prices. Core CCPI rose by 0.2%. PPI carried expectations for a significant drop of 0.6%, while core producer prices were expected to copy last month’s rise of 0.2%.

EUR/USD was trying to break above 1.2540 earlier, but without success. Tension towards the Greek elections is somewhat paralyzing the markets after the Spanish roller coaster.

USD/JPY slid lower within a limited range and fell under 79.60.

For more on the euro, see the EUR/USD forecast.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.