Eurozone Retail Sales decline unexpectedly 0.6% MoM in July

Sagar Dua FXStreet

Eurozone Retail Sales contracted at a 0.6% pace Month-on-Month (MoM) in June, while they were anticipated to rise by 0.3%. June's data revised higher to 0.2% from -0.3%. On an annualized basis, Retail Sales grew at a slower pace of 0.6%, compared to 1.1% estimates and the previous reading of 1.4%, revised higher from 0.7%.

Market reaction

The Euro (EUR) faces slight selling pressure after the release of the Eurozone Retail Sales data for July. At press time, EUR/USD is marginally down to near 1.1622.

Economic Indicator

Retail Sales (MoM)

The Retail Sales data, released by Eurostat on a monthly basis, measures the volume of retail sales in the Eurozone. It shows the performance of the retail sector in the short term, which accounts for around 5% of the total value added of the Eurozone economies. Retail Sales data is widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales volumes in the reference month with the prior month. Generally, a high reading is seen as bullish for the Euro (EUR), while a low reading is seen as bearish

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