Trade Desk Thoughts - Euro-Area Retail Sales

Euro-area Retail Sales Actual 0.3%, Expected 0.1%, Previous 0.1% (Revised from -0.4%)

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 in August 0.3%, up from the previous month, when retail sales rose by 0.1% (revised from -0.4%). In August, the released number deviated slightly from the forecasted number of 0.1%. The volume of retail sales from one year earlier fell by 1.8%. On a monthly basis, the food, drinks and tobacco sub-index rose by 0.7%, while it fell 2.0% from August 2007. The non-food sector grew by 0.1% during the last month, while from August 2007 sales fell by 1.6%

Forex Technical Reaction: The release went unnoticed in the currency market. The euro has continued to trade in the vicinity of the neutral pivot point during the European session, after gaining 70 pips since the new trading day started.

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