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US retail sales flat line in April, dollar plunges
The US dollar tumbled on Wednesday in reaction to dismal US retail sales data which showed that sales in April flat lined. The weak data raised concern that the world’s largest economy may be struggling with its economic recovery and this reduces the likelihood of a rate hike by the Federal Reserve anytime soon.
Economists had forecast sales to rise 0.2 percent last month. Although March’s retail sales were revised higher to show a 1.1 percent increase instead of the previously reported 0.9 percent rise, that was not enough to offset the general weak tone of the report.
It was evident that US households cut back on purchases of automobiles and other big-ticket items, the latest sign the economy was struggling to rebound strongly after barely growing in the first quarter. Lower gasoline prices did not seem to help spending.
Retail sales excluding automobiles, gasoline, building materials and food services were also unchanged after an upwardly revised 0.5 percent increase in March. Economists had predicted core retail sales rising 0.5 percent in April after a previously reported 0.4 percent increase in March.
The dollar tumbled against most of its major counterparts after the data. It fell the most against the yen to 119.02 on Wednesday and consolidated these losses early in to Thursday.
The post US retail sales flat line in April, dollar plunges appeared first on Forex Circles.
