Japanese Retail Sales Actual -3.9%, Expected -4.8%, Previous -2.4%
Release Explanation: Retail sales are the measure of the total sales of goods and services by retail stores in Japan. This is also an important part of figuring the country’s GDP. “Retail sales are an important measure of consumer spending and inflationary pressures. Steady increases in retail sales apply significant inflationary pressures to consumer prices”, TheLFB-Forex.com Trade Team members said. With retail trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the Japanese economy.
Trade Desk Thoughts: Retail sales in Japan have declined again, for a seventh straight month, in March. Sales declined 3.9 percent on the month from one year ago. This was after dropping 5.7 percent the previous month. The slump comes amid a deepening recession which has diminished demand for exports from the country. Corporations have had to cut workers, as well as wages and hours, which has squeezed households of disposable income.
Forex Technical Reaction: The Japanese currency strengthened against the other major currencies after the report, as the number was better than economists’ expected. Against the dollar the Japanese yen has gained 30 pips since the start of the Asian session.