US retail sales rise +0.3%, better than expected – USD

The US consumer is back in October: headline retail sales rise by 0.3%, a bit better than expected. Core sales, which exclude autos, we also have a rise of 0.3%. Last month’s core number was revised up to flat from a drop of 0.2%. Retail sales ex-gasoline ex autos are +0.6%. Also import prices came out better than expected with a fall of 1.3% instead of 1.7% predicted.

The US dollar is extending earlier gains: EUR/USD is sliding towards 1.24, GBP/USD is trading down to 1.5620 and USD/JPY is at 116.75.  AUD/USD is down to the 0.8660 line and NZD/USD holds on to support at 0.7830.

Consumption is key to the US economy, and we get a nice rise in sales before the holiday season.

USD/CAD stands out by remaining stable at  1.1375. This is due to a simultaneous release of Canadian manufacturing sales. They came out at +2.1%, better than 1.3% expected.  A minor downside revision didn’t bother the loonie, which is gaining against all currencies except the greenback.

Last month’s disappointment triggered the big dollar correction. Will this stronger showing, which is slightly better than expected but not a huge beat, provide the next leg  up for the  greenback across the board?

US retail  sales were expected to rise by 0.2% after sliding by 0.3% in September. Core sales also carried expectations for rising by 0.2%.

The dollar was stronger towards the release.

We  later have another consumer related figure: confidence. See how to trade the consumer sentiment number with EURUSD.