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U.S. Retail Sales (Apr) Actual -0.4%, Expected 0.0%, Previous -1.3% (Revised from -1.1%)  

U.S. Core Retail Sales (Apr) Actual -0.5%, Expected 0.1%, Previous -1.2% (Revised from -0.9%)  

Release Explanation: This report measures the value of sales at the retail level, a very important set of figures that make up a large percentage of the consumer spending numbers. Retail sales are the measure of the total sales of goods and services by retail stores. Retail Sales is an important measure of consumer spending and inflationary pressures. “Serviced based economies rely on the strength of the consumer to keep things moving along, this therefore impacts PCE and CPI, the Inflationary reports. 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”, said TheLFB-Forex.com Trade Team members. ” Steady increases in retail sales apply significant inflationary pressures to consumer prices”, they added. With retail trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the economy. 

TheLFB-Forex.com Trade Desk Thoughts: Nominal retail sales declined 0.4% in April; the Census Bureau said today, much worse than the 0.0% read that had been expected. It was the ninth decrease in the last ten months. Total sales for the February through the April 2009 period were down 9.2 percent. From one year earlier, retail sales were down 10.1%. 

Gasoline stations were down 36.5% from April 2008 and motor vehicle and parts dealers sales were down 20.7% from last year. In adjusted terms, retails sales reached $337.7 billion in April

“Retail sales are very important for the financial markets right now, since it makes up 2/3 of the national GDP. As long as retail sales continue to drop, the economy will not be able to recover from the current crisis” TheLFB-Forex.com Trade Team said. “Moreover, the current report suggests the first quarter GDP might be revised somewhat lower, since the March numbers were revised lower,” they added. 

Forex Technical Reaction: The S&P fell 7 points during the news release, extending the declines seen during the overnight session. In the currency market, the euro (Eur/Usd) and yen (Usd/Jpy) each fell 40 pips, as the market appears to be driven by risk aversion.