U.S. retail sales rise above expectations in October

The U.S. retail sales came in above expectations in October. The total sales rose 0.8 percent sequentially, from a downwardly revised -0.1 percent in September. Strength at the headline level was mainly due to certain volatile categories such as gasoline station, autos and building material sales.

Nevertheless, core sales, excluding these volatile categories, also rose by a stable 0.3 percent sequentially, implying widespread strength in consumer demand and augur well for consumption spending in the four quarter, noted Barclays in a research report. However, core sales data for the third quarter were downwardly revised, hinting at slower momentum heading into the fourth quarter.

At the core level, sales rose for most categories in October, led by department stores, electronics, clothing and sporting goods. Outside of this, gasoline station sales recovered by 3.5 percent sequentially, and building material sales were up 1 percent sequentially, after modest rises in the third quarter. Auto sales recovered by a solid 1.1 percent, more than expected.

Strength in the October sales was widely countered by downward revisions to the third quarter data, which lowered the take-off level for the fourth quarter.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -59.0225. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex