Euro area retail sales weakens sequentially in April

The euro area retail sales came in weak in the month of April. In spite of a 2.3 percent sequential surge in German retail sales, the overall retail sales in the currency bloc rose only 0.1 percent in the month, dragged on by declines in France, which recorded a fall of 1.2 percent and Spain among other member states.

On a year-on-year basis, the euro area retail sales rose 1.7 percent, more than 0.5 ppt down on last year’s average, and-looking through the monthly volatility – sales remained flat on a three-month-on-three month basis, noted Daiwa Capital Market Research. The softness in April was accounted for by sales of food and fuel.

But while sales of ‘core’ items were solid, rising 1.7 percent sequentially, that merely reflected a recovery from poor showings in the earlier months, so the underlying trend seems to remain weak in spite of favorable labor market conditions and the relatively stable and elevated readings of consumer confidence this year, added Daiwa Capital Market Research.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was slightly bullish at 65.7287, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 50.1275. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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