US monthly retail sales overview
Wednesday's US economic docket highlights the release of monthly retail sales figures for November, scheduled later during the early North American session at 13:30 GMT. The headline sales are anticipated to have declined by 0.3% during the reported month as against the 0.3% rise recorded in October. Sales excluding autos are projected to record a modest 0.1% growth in November as compared to the previous month's 0.2% increase. Meanwhile, the closely watched Retail Sales Control Group are also anticipated to have risen by 0.2% in November.
How could it affect EUR/USD?
Given that the recent sharp decline for the US dollar has been sponsored by firming expectations for additional US stimulus, a softer data is unlikely to provide any meaningful impetus. Moreover, any reaction to a surprisingly strong reading is likely to remain limited ahead of Wednesday's key event risk – the latest FOMC monetary policy update.
Meanwhile, Yohay Elam, FXStreet's own analyst offered a brief technical outlook for the EUR/USD pair and explained: “Euro/dollar is trading within an ascending triangle, which is a bullish pattern. The ceiling of this triangle is 1.2177, the 2020 high which was tackled several times. Momentum remains to the upside while the pair is also trading above the 50, 100 and 200 Simple Moving Averages.”
Yohay also provided some important technical levels to trade the major: “Above 1.2177, the next lines to watch are the round 1.22 and then 1.2250 and 1.2310, all played roles in 2018. Support awaits at 1.2120, which provided support earlier in the week and is also where the 50 SMA hits the price. It is followed by 1.21 and 1.2060, stepping stones on the way up.”
Key Notes
• US November Retail Sales Preview: If consumer spending fades?
• EUR/USD Forecast: Euro's three boosters may propel it above ascending triangle ahead of the Fed
• EUR/USD jumps above 1.22, highest since 2018, amid growing market optimism
About US retail sales
The Retail Sales released by the US Census Bureau measures the total receipts of retail stores. Monthly per cent changes reflect the rate of changes in such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).
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