Summary:

• US retail sales M/M: 0.8% vs 0.3% expected
• Core reading 1.0% vs 0.6% forecast
• USD looking to recover after post-Fed declines

It’s a busy day of economic releases with the main one from the US the latest retail sales figures. For the month of November – which includes the shopping bonanza Black Friday – retail sales for the US rose by 0.8% against consensus expectations for a 0.3% increase.

The core reading was equally strong with a 1.0% print well above the 0.6% forecast. Positive prior revisions were also seen with the headline moving up to 0.5% from 0.2% previously and the core reading changing to 0.4% from 0.1%. 

 Both retail sales and the core reading rose strongly in the month of November. Source: XTB Macrobond

The market reaction for the US dollar has been positive with the USD index hitting its highest level of the day around 93.60 following the release. The past 24 hours have shown three clear instances when economic events have impacted the USDIDX, with both the CPI and Fed sending it lower and the retail sales providing a boost.

 The USDIDX dropped yesterday after both the CPI and Fed. Today’s retail sales beat has seen it move off the lows. Source: xStation

 The market remains below prior resistance around 94.05 and this level needs to be broken before a sustained move higher can occur. 92.60 may provide support. Source: xStation