Retail sales in the United States increased 0.7% month on month in July to $696.4 billion, according to figures released by the US Census Bureau on Tuesday. This estimate came in better than the market consensus of 0.4%, following a 0.3% (revised from 0.2%) growth in June.
Retail Sales Ex-Autos jumped by 1% in the same period, above analysts’ expectations of 0.4%, while Retail Sales Control Group increased by 1%.
“Total sales for the period May 2023 through July 2023 were up 2.3% from the same period a year ago,” the US Census Bureau added in a news statement. “Retail trade were up 0.6% from June 2023 and 2.0% higher than the previous year.” Nonstore merchants increased 10.3% over the previous year, while food retailers decreased. Services and drinking establishments increased 11.9% from July 2022.”
Retail sales reaction on Market
With the initial reaction, the US Dollar gained strength versus its rivals. The US Dollar Index was up slightly on the day as of writing, at 103.20.
After feeling massive selling activity around a two-month high of roughly 1.3500 in the early New York session, the USDCAD pair is under pressure. Despite positive US Retail Sales and higher-than-expected Canadian inflation statistics for July, the Loonie fell as the US Dollar fell.
The S&P 500 begins on a negative note as strong consumer spending momentum raises consumer inflation expectations. The US Dollar Index is testing territory beneath the critical support level of 103.00.
