Euro area’s retail sales remain unchanged in May

Euro area’s volume of retail sales remained the same in May after falling 0.1 percent sequentially in the prior month. Within the detail, a 1 percent sequential fall in sales of ‘core’ items was countered by a rise of 1.1 percent sequentially for food, while auto fuel sales remained the same. With German retail sales having dropped 2.1 percent sequentially, the most in seven years, the flat euro area reading for May was possibly the best that might have been anticipated.

The average level of sales in the initial two months of second quarter was still 0.4 percent above the first quarter average. So, a positive reading in June would translate into moderate sales growth in the second quarter as a whole. While consumer sentiment dropped to an eight-month low in June, it continues to be elevated by historical standards, underpinned by ongoing company jobs growth and accelerating wage growth.

“And against that backdrop, it's perhaps not a surprise that private consumption is on track to post another quarter of growth in Q2”, noted Daiwa Capital Market Research. 

At 19:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 0.723221, while the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -107.827. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest