U.S. Retail Sales increased by more than expected and reversed six straight months of decline in January according to a report by the U.S. Commerce Department released today. Advance estimates of retail sales increased by 1.0 percent to $344.6 billion in January, handily beating market forecasts that were predicting a 0.8 percent decrease for the month.
January’s increase in sales follows December’s decrease of 3.0 percent which was revised lower from an original decline of 2.7 percent. Despite the sales rise in January, sales compared to January 2008 are down by 9.7 percent.
Sales excluding automobiles registered a 0.9 percent increase for the month after falling by a revised 3.2 percent in December. Sales minus autos also beat market forecasts expecting a fall of approximately 0.4 percent for the month.
Contributing to the increase in retail sales for the month were increases in electronics & appliance store sales which rose by 2.6 percent, food & beverage stores which advanced by 2.1 percent and nonstore retailers which increased by 2.7 percent. Also showing positive gains in January were gasoline station sales with a 2.6 percent increase, auto & other motor vehicle dealers with a 1.8 percent rise, clothing & clothing accessories stores with a 1.6 percent gain and general merchandise stores which increased by 1.1 percent.
Contributing negatively to the retail sales in January were miscellaneous stores retailers, department stores, building material & garden supplies dealers and furniture & home furnishings stores.
U.S. Weekly Jobless Claims decreased by 8,000.
U.S. new jobless claims decreased by 8,000 people in the week ending February 7th to a seasonally adjusted total of 623,000 according to data released by the U.S. Labor Department. The previous week had registered a revised total of 631,000 claims. A four week moving average of initial unemployment claims showed an increase of 24,000 workers to a rate of 607,500 workers.
Workers receiving continuing unemployment benefits for the week ending January 31st increased by 11,000 to 4,810,000 workers from the previous week. A four week moving average of continuing claims increased by 73,750 workers from the previous week to a total of 4,745,250 workers.
U.S. Dollar gains in Forex Trading.
The U.S. dollar has been gaining in forex trading against all of the major currencies so far today. The dollar has gained against the euro, Australian dollar, Swiss franc, Japanese yen, British pound, New Zealand dollar and the Canadian dollar.
The euro has fallen versus the dollar as the EUR/USD has declined from today’s 1.2911 opening(00:00 GMT) to trading at approximately 1.2839 in the afternoon of the US trading session at 12:33pm EST.
The British pound has declined today versus the dollar from 1.4373 dollars per pound to trading at 1.4251 dollars per pound. The dollar is trading higher against the Japanese yen today as the USD/JPY trades at 90.63after opening at 90.03.
The dollar has gained against the Canadian dollar after opening at 1.2413 earlier today to trading later at 1.2469. Against the Swiss franc, the USD has gained ground from the 1.1593 opening to trading at 1.1644.
The New Zealand and Australian dollars are both falling against the US dollar from their opening exchange rates. The NZD/USD currently trades at 0.5216 after opening at 0.5269 while the AUD/USD trades at 0.6516 after opening today at 0.6580.
USD/CHF Chart – The US Dollar gaining against the Swiss Franc today in Forex Trading and trading above the 21-day simple moving average(blue).
