EUR/USD: US Retail Sales

The EUR/USD revealed temporary appreciation amid weaker-than-expected reports on retail sales in the US. The European single currency added against the Greenback 0.14% or 16 base points to enter the 1.1980 area, but continued a side move at a slightly weaker level. 

The Commerce Department reported that the US retail sales dropped unexpectedly 0.2% over the month of August, missing expectations for a 0.3% increase. The negative changes were mainly due to depressed purchases of motor vehicles likely after Hurricane Harvey, which could cause a further moderation in consumer spending in the Q3. However, a rise in purchases at restaurants and furniture outlets suggested the demand is set to be supported by a healthy labour market.