Euro-area Retail Sales Actual 0.0%, Expected -0.2%, Previous -0.1% (Revised from 0.6%)
Release Explanation: Measures the value of sales at the retail level. A currency will be impacted by this report over time as it reveals the strength of the public in their ability, or desire, to spend.
Trade Desk Thoughts: Retail sales in the Euro-area remained steady in December, falling 0.1%, revised from 0.6%, from the previous month. From one year ago, retail sales are down 1.6% from 2.6% in November.
The December release was pulled higher on a monthly basis by the food, drinks and tobacco sub-index, which rose by 0.2%, but the non-food sales declined 0.4%. From one year ago, both the food and non-food sectors are down by 1.0% and by 2.0% respectively. Retail sales were on a constant rise since 2000, but now are starting to head lower. The season-adjusted number is at the same level as it was in the early part 2006.
Forex Technical Reaction: The euro had a weak reaction to the news release. The pair trades below the neutral pivot point (1.2955), after it fell 100 pips since the European session opened.