It’s almost OK in US springtime, but not good enough. The volume of retail sales rose by 0.9% in March and core sales by 0.4%, both slightly below expectations. PPI rose by 0.2% and core PPI by 0.1%, within predictions.There were high hopes for a significant rebound in the spring, and the outcome is only mediocre, despite an upwards revision of February’s retail sales to just -0.5%.
The USD is down with EUR/USD hitting 1.06 — more coming
With the revision, retail sales are within expectations, but a more meaningful rebound was expected. Oil prices are lower and wages are higher. And not for the first month. Where is the US consumer hiding? Will we see the spring bounce only in April?
US retail sales were expected to bounce and rise by 1.1% in March, following a third consecutive disappointment with a fall of 0.6% in February (before revisions). Core sales were predicted to rise by 0.7% after falling 0.1%.
The US dollar remained strong towards the publication.
Currency reactions:
- EUR-USD traded around 1.0560 and afterwards it peaked at 1.0630 before sliding.
- GBP-USD at 1.4646 and tops 1.47.
- USD-JPY just under 120 and is down to 119.60.
- AUD-USD around 0.7577. It tackles the 0.76 level.
- NZD-USD at 0.7450 and now getting closer to 0.75.
- USD-CAD under 1.26 and now slides to 1.2550.
At the same time, producer prices were released. PPI was expected to rise 0.3% while core PPI carried expectations for gain of 0.2%. Both fell in February.
More: No bottom in sight for EUR/USD – Goldman Sachs
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