US monthly retail sales overview
Friday’s US economic docket highlights the release of monthly retail sales figures, scheduled at 12:30 GMT. Consensus estimates point to yet another dismal round of figures and the headline sales are expected to show a fall of 12% in April. The figure excluding autos is anticipated to have dropped 8.6% during the reported month. Meanwhile, the closely watched Retail Sales Control Group is seen declining by 4.6%.
How could it affect EUR/USD?
The muted market reaction to the recent slew of disappointing macro releases suggests that the April retail sales report will also be ignored, unless there is a big divergence from the expected numbers. The data seems unlikely to be a major gamechanger for the USD, or provide any meaningful impetus to the EUR/USD pair.
Ahead of the important release, NDDFX Yohay Elam provided important technical levels to trade the major: “Support awaits at 1.0780, which has been a low point several times in May, and more importantly by 1.0765, the monthly low. Further down, 1.0730 and 1.0640 await.”
“Looking up, 1.0820 capped recovery attempts and the 50 SMA is approaching this price. The next line to watch is 1.0870, a swing high from last week, and then 1.0890, a stubborn cap in April. 1.0925 and 1.0970 are next,” Yohay added further.
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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).