US Retail Sales fall, Producer Prices decline. Dollar mixed in Forex Trading. | CountingPips Forex Blog

December 12, 2008 - Forex Economic News

US Retail Sales fall, Producer Prices decline. Dollar mixed in Forex Trading.

U.S. Retail Sales decreased for the fifth month in a row in November according to a report by the U.S. Commerce Department released today. Advance estimates of November retail sales showed that sales decreased by 1.8 percent to $355.7 billion from October. On an annual basis, retail sales have decreased by 7.4 percent from the November 2007 level. Market US Dollar mixed in Forex Trading, Fx Trade forecasts were expecting a decrease of 2.0 percent for Novmeber following October's revised record decline of 2.9 percent.

November's retail sales numbers were weighted down by a 2.8 percent decline in automobile sales and a 14.7 percent decline in gasoline station sales. Also showing declines for the month were building material & supplies dealers, miscellaneous store retailers and nonstore retailers. Some notable positive contributors to the retail sales data were electronics & appliance stores with a 2.8 percent increase, department stores with a 2.1 percent increase and sporting goods, hobby, book & music stores with a 2.8 percent increase.

Retail sales excluding automobiles decreased by 1.6 percent in November following October's revised 2.4 percent decline. The monthly decline was better than forecasts that were expecting sales minus automobiles to register a 1.8 percent decrease.

Producer Prices continue fall.

The Producer Price Index, released in a separate report by the Department of Labor, fell more than expected in November as energy costs dropped and eased inflation on finished goods. Producer prices decreased by 2.2 percent in the month of November following a decrease of 2.8 percent in October and a decrease of 0.4 percent in September. The annual rate of change for November showed that producer prices were 0.4 percent higher than November of 2007 after October's annual rate registered a 5.2 percent increase. Market forecasts were expecting monthly producer prices to decline by 2.0 percent and the annual rate of increase to register 0.2 percent. Helping to contribute to the lower ppi in November was the cost of energy which decreased by 11.2 percent for the month after decreasing by 12.8 percent in October.

Core producer prices, excluding food and energy prices, rose by 0.1 percent in November following a rise of 0.4 percent in October and equaled market forecasts. On an annual basis, core producer prices advanced by 4.2 percent in Novmeber compared with an increase of 4.4 percent in October and met market expectations of a 4.2 percent increase.

UMichigan/Reuters Sentiment Survey rises in December.

The preliminary consumer sentiment survey produced by the University of Michigan and Reuters for December rose to a 59.1 score after scoring a 28-year lowpoint in November. December's score follows a score of 55.3 in November and surpassed economic forecasts expecting the score to decrease to approximately 55.0. The expectations index, which measures future economic sentiment, decreased from 53.9 in November to 52.4 in December while the current conditions index, which measures current economic sentiment, increased from 57.5 in November to 69.4 in December. The final and complete version of the sentiment survey will be released on December 23rd.

Forex Market - US Dollar shows mixed results today.

The U.S. dollar has been mixed in forex trading today against the major currencies. The dollar has gained against the pound, yen, Canadian dollar and New Zealand dollar while declining verses the euro, Australian dollar and Swiss franc.

The euro has climbed back to advancing verses the dollar after seeing early losses this morning. The EUR/USD has edged up from today's 1.3365 opening to trading at approximately 1.3371 in the afternoon of the US trading session at 3:09pm ET.

The British pound has fallen today verses the American currency from 1.5058 to trading at 1.4968 dollars per pound after gaining against the dollar for the past couple of days. The dollar has advanced against the Japanese yen today as the USD/JPY has gained from its 89.34 opening to trading at 91.01.

The dollar has advanced against the Canadian dollar after opening at 1.2384 earlier today to trading later at 1.2435. Meanwhile, the USD has declined against the Swiss franc from 1.1784 to trading at 1.1763. The Australian dollar has also gained ground verses the USD as the AUD/USD trades at 0.6612 after opening today at 0.6583 while the New Zealand dollar has declined verses the USD and trades at 0.5451 after opening at 0.5482.

USD/CHF Chart - The US Dollar steadily falling vs. the Swiss Franc this week in forex trading action(Hourly Chart).

Today's Forex Chart

tags: retail sales, producer prices, consumer confidence, forex trading

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