U.S. retail sales likely to have grown strongly again in October

Retail sales in the U.S. are expected to have come in stronger again in October. According to a TD Economics research report, the headline sales are expected to have grown 0.3 percent in the month, while the core control group is likely to have risen 0.4 percent. The hurricanes that increased the spending in September, particularly for autos, grocery stores and restaurants, and building materials, have scope for a sustained tailwind into October.

New vehicle sales are expected to be just a modest drag as the reported figures indicated a smaller than expected moderation, offloading a strong landing for fourth quarter consumer spending. Receipts from gasoline station might have contributed negatively due to lower gasoline prices.

“We expect the report to reinforce Q4 real PCE tracking estimates near a 2 percent pace”, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 14.4722. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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