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Headline retail sales miss with a rise of only 0.6% but core retail sales provide a bigger shortfall with 0.2%. The control group falls short  with 0.2% and here, the revision is to the downside. The ex gas/autos figure is flat. PPI data is basically as expected.

Despite the weak data, the US is bouncing from the lows. The greenback slid ahead of the publication, and perhaps markets think that it could have been worse.

EUR/USD trades at 1.0630, GBP/USD at 1.1250 and USD/JPY is up to 114.80. Among commodity currencies, USD/CAD trades around 1.3150, AUD/USD at 0.7480 and NZD/USD around 0.7110.

US retail sales were expected to rise by 0.5% in December after advancing by 0.1% in November. Core sales carried expectations of rising by  0.5% as well, after increasing by 0.2% previously.

The US dollar got a big blow from Donald Trump. The President-Elect, set to take office in one week, did not mention fiscal stimulus, taking the air out of the recent dollar rally.  However, he did take his time with bashing various companies.

US retail sales and PPI data (updated)

  • Retail sales:  previous: 0.1%, expected 0.7%, actual: 0.6%
  • Core retail sales: prev. +0.2%, exp. +0.5%, actual: 0.2%
  • Retail control group: prev. +0.1%, exp. +0.4%, actual: 0.2%
  • Retail ex gas/autos: prev. +0.2%, actual: 0%
  • PPI m/m: prev. +0.4%, exp. +0.3%, actual: 0.3%
  • Core PPI m/m: prev. +0.4%, exp. +0.1%, actual: 0.2%
  • PPI y/y: prev. 1.3%, exp. 1.6%, actual: 1.6%
  • Core PPI y/y: prev. 1.6%, exp. 1.5%, actual: 1.6%

The final word of the day belongs to the consumer sentiment release by the  University of Michigan and Reuters.

See how to trade the consumer sentiment with EUR/USD