Investing.com - Retail sales in the U.S. rose for the second straight month in October, underling optimism over the health of the economy and supporting the case for a U.S. interest rate hike this year.
Retail sales increased by a seasonally adjusted 0.2% last month, according to the U.S. Commerce Department, just above expectations for a more modest gain of 0.1%.
Retail sales for September were revised to a gain of 1.9% from a previously reported gain of 1.6%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, inched up by a seasonally adjusted 0.1% in October, compared to forecasts for a gain of 0.2%. Core sales in September increased 1.2%, whose figure was revised from a previously reported gain of 1.0%.
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.
USD/JPY was at 112.77 from around 112.67 ahead of the release of the data, EUR/USD was trading at 1.1835 from around 1.1840 earlier, while GBP/USD was at 1.3165 from 1.3175.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 93.47, compared to 93.44 ahead of the report.
Meanwhile, U.S. stock futures pointed to a lower open. The blue-chip Dow futures dipped 0.4%, the S&P 500 futures shed 0.3%, while the tech-heavy Nasdaq 100 futures slumped around 0.2%.
Elsewhere, in the commodities market, gold futures traded at $1,286.23 a troy ounce, compared to $1,287.53 ahead of the data, while crude oil traded at $55.05 a barrel from $55.11 earlier.