The importance of Retail Sales and Core Retail Sales in Forex markets.
Retail sales are the change in total value of inflation adjusted sales at the retail level. Retail Sales are a gauge of consumer spending which accounts for the majority of overall spending. Retail sales usually correlates with the Non-Farm Payroll (NFP). When the number of people increases, the chances of getting a higher Retail and Core retail Sales becomes higher. Apparently big spenders are workers otherwise why would these two correlate? Retail Sales include in-store sales, catalogue and out-of store sales.
Core Retail Sales
Core retail sales exclude Automobile and gas sales. They are excluded due to their volatility. Core Retail Sales are also used to calculate GDP, developing Consumer Price Indexes and analyzing the current economic health of a country. Federal Reserve (Feds) also uses it to asses the consumer behavior. We had U.S Core Retail Sales on the 14th (last Friday). It increased by 0.1% from expected 0.4% to 0.5%.
Core Retail and Retail Sales that I follow
- U.K Retail and Core Retail Sales
- U.S Retail and Core Retail Sales
- Canada Retail and Core Retail Sales