A big disappointment on all measures. Retail sales are down 0.3%, far worse than a rise of 0.2% expected. In addition, this came on top of a downwards revision of May: a gain of only 1% against 1.2% originally reported. Core sales.1%, also worse than +0.5% predicted and also on top of a downwards revision of May: +0.8% instead of +1% initially reported. Excluding gas and autos, we are down 0.2%, and also on top of a downwards revision worth 0.2%.
The US dollar is down across the board.
The volume of retail sales was expected to advance 0.2% in June after 1.2% in May (before revisions). Core sales carried expectations for 0.5% after 1% beforehand. Excluding gas and autos, we had a rise of 0.7% in May.
The US dollar was off its highs towards the publication and extends its losses:
- EUR/USD trading around 1.1040 and shooting to 1.0070 afterwards.
- GBP/USD at 1.5580 and topping 1.56 in the aftermath.
- USD/JPY around 123.25 and down to 123.
- USD/CAD at 1.2750 and down to 1.2730.
- AUD/USD at 0.7444 and up to 0.7470.
- NZD/USD at 0.67 and up to 0.6725,
Consumption is a major part of the US economy and is eyed closely by markets.
The Greek crisis continues dominating the headlines.
Greek crisis – all the updates
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