U.S. retail sales likely to have grown modestly in November
Retail sales data for the U.S. for the month of November is set to release tomorrow. According to a Wells Fargo research report, the retail sales are expected to have risen at a more modest rate of 0.2 percent in November after rising 0.8 percent in the prior month.
Total sales are likely to have been held down by fewer auto sales and lower revenues at gas stations as prices at the pump plummeted. Nevertheless, control group sales, which exclude autos, gas, building materials and food services, are likely to be solid after what appears to have been an impressive beginning to the holiday shopping season.
The retail sales report’s proclivity for revisions and general choppiness make it unlikely to sway the Fed’s December policy decision.
“Yet a downside miss in control group sales could cause markets to second-guess generally robust expectations for holiday sales. In contrast, an upside surprise is likely to illustrate to markets that consumer spending remains solid and is likely to provide sizeable support to growth in the coming months”, added Wells Fargo.
At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 9.58424. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex