Retail Sales data for the Europe’s strongest economy came out in the morning, falling by 0.3% (on monthly basis) for February, while the forecast was for a rise of 0.4%. On annual basis the indicator rose by 1.1%, though it is still below the forecast of 1.8%. The retail Sales indicator is characterized by high volatility, which makes it hard to be forecasted with accuracy. Upon the announcement of the negative news the Euro surprisingly spurred against the greenback to hit a high of 1.4166, as the single currency finds strong support on the hawkish rhetoric from the ECB delegates concerning a possible rate hike on the next policy meeting of the Bank. Currently the pair is trading higher at 1.4182, recording a four days high.
The Federal Department of Statistics of Germany releases the retail Sales data every month, the indicator measures changes on the sales of the retail sector. Retail Sales data give indications for the Consumer Spending in the country. In general the data are showing whether the economy is on a strong growth path or not. The higher the rate is the more positive it is for the European Unit.