According to the recent retail sales report published by the U.S. Department of Trade, U.S. retail sales dropped by 0.3% in March 2016 relative to the previous month, when the sales shrank by 0.1%. At the same time, analysts had expected an 0.1% increase, which leads us to believe the the forecast failed.
To be more specific, the retail sales within the scope of the so-called “control group” showed a 0.1% increase in March 2016. By the way, this indicator is take into account when calculating the U.S. GDP. This time the experts failed again since they had predicted a 0,4% increase.
On top of that, American auto dealers report lower sales as well. That’s the reason why the retail sales index excluding auto sales indicated a slight increase, a 0.2% gain to be more specific. As far as y/y figures are concerned, the auto sales keep on showing a sharp decline. In March alone the sales dropped by 2.1% relative to the same reporting period 12 month before.
FOREX
According to Masterforex-V Academy, the U.S. Dollar is still recovering from a long-term rally against a basket of other major currencies. For now, the USD index is trading somewhere close to 94,67.
The closest major level of support is 93.62. At the same time, the market tendency is going to reverse only if the price breaks above 98,56 and the top of the descending MF sloping channel.
