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 rose slightly in January, following a 0.3% (revised) decline in the previous month. From one year ago, retail sales fell 2.2% in January, from 2.4% in December.
The January release was pulled higher, on a monthly basis, by the non-food sector, which grew 0.4%, but the food, drinks and tobacco sub-index declined 0.3%. From one year ago, both the food and non-food sectors are down by 2.4% and by 2.2% respectively. Retail sales were on a constant rise since 2000, but now are starting to move lower. In January, retail sales fell to the 2006 level.
Forex Technical Reaction: The euro could not move decisively during the overnight session against the dollar, and traded mostly flat. Against the pound, the euro dropped 60 pips tonight.