Mixed News For Latest EU Retail Sales Figures

by News Guy on January 14, 2013

(Guest Post)

The latest figures released by the European Union in relation to retail sales have revealed a mixed picture. Retail sales in November climbed by a slightly disappointing 0.1% compared to a drop of 0.7% from the previous month. Retail sales compared to November 2011 were down by 2.6% compared to the 3.2% for the same year-on-year statistic a year ago.

Results from the 17 Eurozone countries suggested that any recovery in consumer sales is likely to be a long way off, although the figures were dragged down by poor performances from Luxembourg, the Republic of Ireland and Portugal. The markets anticipated a higher rise, but some encouragement can be taken from the results.

Non-food stability not enough

Aside from fuel, sales of food, drink and tobacco had fallen by 0.3% in the wider EU market in November. Meanwhile, non-food purchases were stable, but that comes after a recent decline in excess of 2% and low household spending.

A spokesperson from FX Solutions explained what this news could mean for the markets:

“Today’s EU retail sales news was a bit of a mixed bag. On a monthly basis, sales rose somewhat less than expected at 0.1% when the market was hoping for a rise of 0.3%.

“However, October’s sharp 1.2% fall in retail sales, which was its quickest speed of decline in six months, was upwardly revised to a decline of 0.7%, which may have countered any negativity from the lightly disappointing November sales number”, they added.

Euro suffers in currency markets

Following the news from the EU, in the currency markets, the Euro suffered sizeable losses against some of the other major currencies.  As well as the disappointing sales figures, poor German factory orders data helped to see the EUR/USD currency pair fall 65 pips during trading to just 1.33068.

Alongside the Yen, the Euro fell by more than 60 pips midway during Tuesday to just 114.23. Bearish movements for riskier assets such as the British Pound and crude oil have made it difficult for traders to know what’s next, especially when the next retail sales figures are released for December.

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