Investing.com - Retail sales in the U.S. fell unexpectedly in February, dampening optimism over the strength of the economic recovery, official data showed on Thursday.
In a report, the U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.6% last month, disappointing expectations for a gain of 0.3%. Retail sales fell by 0.8% in January.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, slumped by a seasonally adjusted 0.1% in February, compared to forecasts for a 0.5% increase. Core sales in January dropped 1.1%, downwardly revised from a previously reported fall of 0.9%.
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 1.0670 from around 1.0618 ahead of the release of the data, while GBP/USD was at 1.5017 from 1.4980 earlier, while USD/JPY was at 120.81 from 121.06 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 98.75, compared to 99.08 ahead of the report.
Meanwhile, U.S. stock futures pointed to a modestly higher open. The Dow futures pointed to a gain of 0.4%, the S&P 500 futures rose 0.35%, while the Nasdaq 100 futures tacked on 0.3%.
Elsewhere, in the commodities market, gold futures traded at $1,158.20 a troy ounce, compared to $1,155.40 ahead of the data, while crude oil traded at $48.54 a barrel from $48.56 earlier.