Breaking: US Retail Sales in August increase by 0.6% vs. 1% expected

Eren Sengezer FXStreet

Retail Sales in the United States rose by 0.6% on a monthly basis in August to $537.5 billion, the data published by the US Census Bureau revealed on Wednesday. This reading followed July's increase of 0.9% (revised from 1.2%) and missed the market expectation of 1%.

Market reaction

The US Dollar Index edged slightly lower with the initial reaction to this data and was last seen losing 0.3% on the day at 92.80.

Additional takeaways

"Total sales for the June 2020 through August 2020 period were up 2.4% from the same period a year ago."

"Retail trade sales were up 0.1% from July 2020, and 5.1% above last year."

"Nonstore retailers were up 22.4% from August 2019, while clothing and clothing accessories stores were down 20.4% from last year."

Retail Sales Quick Analysis: Miserable figures good for gold as fiscal help could come sooner.

The economic recovery cannot walk on its own – that is the conclusion from America's retail sales figures for August. Expenditure grew by only 0.6%, below 1% expected and on top of a downward revision for July. The Retail Control Group – which is used for Gross Domestic Product calculations – shocked with a drop of 0.1%. Also here, it came on top of a lower level for July.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.