US dollar slips after disappointing retail sales data


The consumer not as strong as believed

The consumer not as strong as believed

The US dollar slipped across the board after January retail sales numbers disappointed and revisions weakened the December report.

The control group — which excludes the volatile categories of food, gasoline and building materials — was flat. The December number was revised to +0.2% from +0.5%. With that, the average over the past six months is now 0%.

The dollar fell 10-20 pips across the board on the numbers while gold climbed $4. US stock futures are close to unchanged, erasing early gains.

Despite the weakness in the dollar, Pantheon highlights a caveat in the data:

The culprit in the weak control number is the clothing component, down a huge 3.1% m/m, after a 2.7% jump in December.
The downward revisions, which will shave 0.1% from Q4 GDP growth, are disappointing, but they don’t change the big picture: The consumer is fine.

After the initial fall in the dollar, dip-buyers have helped the dollar pare declines.

ForexLive



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