The retail sales report is one of such elements, for it’s one of the most significant indicators of a country’s economic development.
Now it’s your time to learn what it is, what it does, and how to take advantage of it!
What’s The Retail Sales Report?
The retail sales report refers to the data collected from the purchases of goods by consumers in the retail establishment.
It’s important to note that the report does not include services such as travel, health, and any market outside of physical goods.
The report is born off receipts from random retailers around the US, and thus it comes shown in USD without adjusting for inflation. It also includes the percentage change in sales from previous months.
The retail sales report is divided into different categories depending not on the type of goods sold, but on the type of establishment. A common practice is to present a retail sales report without the sales corresponding to automotives, for it’s a very volatile market from month to month and it usually distorts the general view.
Three retail sales reports are released as follows:
Retail Sales And The USD: Why Should You Care?
Retail sales make up almost a quarter of all the economic activity in the US, so it’s easy to see how significant it is for the US economy and the USD in the Forex market.
It’s not hard to believe that higher retail sales numbers give bullish momentum to the USD, as interest rates tend to increase with stronger economic growth. However, if retail sales gets too “hot”, then it could also have a reverse effect and be bearish for the Dollar.
As many of the goods in the US are manufactured overseas, higher demand for these products also means higher demand for the currencies from the countries that make them, which can also be negative for the US Dollar at the expense of these other currencies.
The Shortcomings Of The Retail Sales Report
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