• US October Retail Sales data beats expectations, supporting the US dollar. 
• Headline and core sales rise 1.7% MoM versus forecasts for 1.2% and 1.0% growth respectively. 

US Retail Sales rose by 1.7% MoM in October, according to data published by the US Census Bureau revealed on Tuesday. That was above market expectations for a MoM rise of 1.2% and above the (upwardly revised from 0.7%) 0.8% MoM gain seen in September.

Strength was also seen in the Core measures of October Retail Sales; MoM, core sales also rose by 1.7% in October, above expectations for a 1.0% rise and higher than September's 0.7% MoM rise (which was revised lower from 0.8%). The Retail Control, which is most highly correlated to the consumer spending component in US GDP data, rose 1.6% MoM, well above expectations for a 0.9% rise and above last month's 0.5% MoM reading, which was downwardly revised from 0.8%.  

Market Reaction

The US dollar saw a kneejerk pop higher in wake of the latest strong US Retail Sales report. The Dollar Index (DXY) popped up from the low 95.50s to test session highs above 95.60, though much of this kneejerk reaction has now been reversed. Ahead, FX market participants will be keeping an eye on US October Industrial Production figures at 1415GMT and then a heavy slate of Fed speakers throughout the remainder of the session.