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German Retail Sales fall by 2.0% MoM in March vs. -0.1% expected

German Retail Sales, a key measure of consumer spending, declined again in March. The consumer spending measure fell 2.0% month-on-month (MoM), according to official data released by Destatis, while it was expected to have declined 0.1%. In February, Retail Sales eased by 0.3% (revised from -0.6%). 

On an annualized basis, Retail Sales dropped 2.0%, against a rise of 0.5% estimates and the prior release of 0.9% growth (revised from 0.7%). 

Market reaction

No immediate reaction was observed in the Euro (EUR) after the data release. As of writing, the EUR/USD pair is down 0.14% on the day at 1.1660.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.13%0.10%0.13%0.00%0.03%0.04%0.03%
EUR-0.13%-0.00%-0.02%-0.13%-0.09%-0.06%-0.07%
GBP-0.10%0.00%0.02%-0.12%-0.07%-0.02%-0.07%
JPY-0.13%0.02%-0.02%-0.15%-0.11%-0.14%-0.14%
CAD-0.01%0.13%0.12%0.15%0.02%0.02%0.02%
AUD-0.03%0.09%0.07%0.11%-0.02%0.02%0.02%
NZD-0.04%0.06%0.02%0.14%-0.02%-0.02%-0.01%
CHF-0.03%0.07%0.07%0.14%-0.02%-0.02%0.00%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Euro FAQs

The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all foreign exchange transactions, with an average daily turnover of over $2.2 trillion a day. EUR/USD is the most heavily traded currency pair in the world, accounting for an estimated 30% off all transactions, followed by EUR/JPY (4%), EUR/GBP (3%) and EUR/AUD (2%).

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy. The ECB’s primary mandate is to maintain price stability, which means either controlling inflation or stimulating growth. Its primary tool is the raising or lowering of interest rates. Relatively high interest rates – or the expectation of higher rates – will usually benefit the Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

Eurozone inflation data, measured by the Harmonized Index of Consumer Prices (HICP), is an important econometric for the Euro. If inflation rises more than expected, especially if above the ECB’s 2% target, it obliges the ECB to raise interest rates to bring it back under control. Relatively high interest rates compared to its counterparts will usually benefit the Euro, as it makes the region more attractive as a place for global investors to park their money.

Data releases gauge the health of the economy and can impact on the Euro. Indicators such as GDP, Manufacturing and Services PMIs, employment, and consumer sentiment surveys can all influence the direction of the single currency. A strong economy is good for the Euro. Not only does it attract more foreign investment but it may encourage the ECB to put up interest rates, which will directly strengthen the Euro. Otherwise, if economic data is weak, the Euro is likely to fall. Economic data for the four largest economies in the euro area (Germany, France, Italy and Spain) are especially significant, as they account for 75% of the Eurozone’s economy.

Another significant data release for the Euro is the Trade Balance. This indicator measures the difference between what a country earns from its exports and what it spends on imports over a given period. If a country produces highly sought after exports then its currency will gain in value purely from the extra demand created from foreign buyers seeking to purchase these goods. Therefore, a positive net Trade Balance strengthens a currency and vice versa for a negative balance.

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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