Investing.com - Retail sales in the U.S. fell more than expected in December, dampening optimism over the strength of the economic recovery, official data showed on Wednesday.
In a report, the U.S. Commerce Department said that retail sales declined by a seasonally adjusted 0.9% last month, worse than expectations for a drop of 0.1%.
Retail sales growth for November was revised down to a 0.4% gain from a previously reported increase of 0.7%.
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 1.0% in December, disappointing forecasts for a 0.1% increase. Core sales in November rose by 0.1%, downwardly revised from a previously reported increase of 0.5%.
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 1.1802 from around 1.1775 ahead of the release of the data, while GBP/USD was at 1.5232 from 1.5196 earlier, while USD/JPY was at 116.44 from 116.82 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 92.11, compared to 92.33 ahead of the report.
Meanwhile, U.S. stock futures extended losses. The Dow futures pointed to a drop of 1.2% at the open, the S&P 500 futures fell 1.2%, while the Nasdaq 100 futures dropped 1%.
Elsewhere, in the commodities market, gold futures traded at $1,239.20 a troy ounce, compared to $1,233.10 ahead of the data, while crude oil traded at $45.39 a barrel from $45.58 earlier.