U.S. Retail Sales (Mar) Actual -1.1%, Expected 0.3%, Previous -0.1%
U.S. Core Retail Sales (Mar) Actual -0.9%, Expected 0.1%, Previous 0.7%
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.
Trade Desk Thoughts: Nominal retail sales declined 1.1% in March, the Census Bureau said today, much worse than the 0.3% increase that had been expected. It was the eighth decrease in the last nine months. Total sales for the January through March 2009 period were down 8.8% from the same period a year ago.
Retail trade sales were down 1.1% from February 2009 and 10.7% below the same period last year. Gasoline stations were down 34% from March 2008 and motor vehicle and parts dealers sales were down 23.5% from last year.
Forex Technical Reaction: After strengthening during the period leading up to the release, U.S. futures declined. The dollar strengthened against most of the other major currencies with the exception of the Japanese yen which is strengthening on equity markets expecting to open lower.