Investing.com - Retail sales in the U.S. fell unexpectedly in June, while core sales also missed estimates, dampening optimism over the strength of the economy and dimming prospects for higher interest rates, official data showed on Tuesday.
In a report, the U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.3% last month, disappointing expectations for a gain of 0.2%. Retail sales rose by 1.0% in May, whose figure was revised down from a previously reported gain of 1.2%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, fell by a seasonally adjusted 0.1% in June, compared to forecasts for a 0.5% increase. Core sales in May increased 0.8%.
Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.
EUR/USD was trading at 1.1072 from around 1.1040 ahead of the release of the data, GBP/USD was at 1.5611 from 1.5579 earlier, while USD/JPY was at 123.00 from 123.28 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.41, compared to 96.68 ahead of the report.
Meanwhile, U.S. stock futures pointed to a mixed open. The Dow futures pointed to a loss of 0.1%, the S&P 500 futures shed 0.1%, while the Nasdaq 100 futures advanced 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,156.70 a troy ounce, compared to $1,153.90 ahead of the data, while crude oil traded at $52.30 a barrel from $52.21 earlier.