US retail sales preview: What to expect of EUR/USD?

By FXStreet FXStreet (Mumbai) – The EUR/USD pair has taken out the hourly 50-MA resistance amid sell-off in oil and weak European stock market and is eyeing 1.10 levels, heading into the US November advance retail sales report.

Expectations are high

Expectations are high for November retail sales. The headline figure is seen rising 0.3% m/m from Oct’s 0.1%. Retail sales ex-Autos is seen rising 0.3% from Oct’s 0.2%. The control group retail sales number is expected to show a much stronger jump of 0.4%.

The headline figure could disappoint, since autos form a 1/5th of the total number. However, the auto sales had dipped in November. Most experts also say the Black Friday sales were not significantly strong as well.

Control group number may save the day

Control group sales – which exclude gas, autos, food and home improvement supplies – are faring a bit better since last couple of months and may match estimates today. Last month too, the figure was upbeat and provided support to the US dollar.

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Source:: FX Street