When are US monthly retail sales figures and how could they affect EUR/USD?
|US monthly retail sales overview
Friday's US economic docket highlights the release of monthly retail sales figures, scheduled at 13:30 GMT. Consensus estimates point to modest growth of 0.3% for October, reversing the previous month's unexpected fall. Sales excluding automobiles (core retail sales) are seen rising by 0.4% as compared to the previous month's reading of -0.1%. Meanwhile, the growth for the closely watched Retail Sales Control Group is expected to come in at 0.3% monthly rate during the reported month.
As Joseph Trevisani, Senior Analyst at FXStreet explains: “The labor market has kept faith with the American consumer and US households have kept faith with the US economy. Consumption has kept the economy afloat over the past year even as political and economic wrangles threatened to undermine consumer sentiment. If the China trade war is truly defused business spending will return to keep pace with consumption and fill in the gaps left by a year of denial and the US economy will further extend this record expansion.”
How could it affect EUR/USD?
Yohay Elam, FXStreet's own analyst offered his view on the EUR/USD pair and also provided important technical levels to trade the major: “Resistance awaits at 1.1045, which capped euro/dollar earlier this week. It is followed by 1.1070, which provided support twice in late October. It is followed by 1.1125, which served as support when the pair traded at the high ground two weeks ago. 1.1180 is next.”
“Looking down, Support awaits at 1.0990, the low point on Thursday. It is followed by 1.0940 and 1.0905, which were both swing lows on the way down. The 2019-trough of 1.0879 is next,” he added further.
Key Notes
• US October Retail Sales Preview: Consumers keep faith with the economy
• US: Retail sales likely to post a soft 0.1% gain for October – TDS
• EUR/USD Technical Analysis: upside now targets the 55-day SMA near 1.1040
About US retail sales
The Retail Sales released by the US Census Bureau measures the total receipts of retail stores. Monthly per cent changes reflect the rate of changes in such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).
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