Thursday, January 29, 2009
Japanese Retail Sales Fall for A Fourth Month
Japanese Retail Sales Fall for A Fourth Month
Japanese Retail Sales Actual -2.7%, Expected -1.6%, Previous -0.9%
Release Explanation: Retail sales are the measure of the total sales of goods and services by retail stores in Japan. This is also an important part of figuring the country’s GDP. Retail sales are an important measure of consumer spending and inflationary pressures. Steady increases in retail sales apply significant inflationary pressures to consumer prices. With retail trade being the foremost indicator for consumer spending, this figure is extremely important in understanding the Japanese economy.
Trade Desk Thoughts: Retail sales in Japan have slumped for a fourth straight month in December. This is further proof that the economy has fallen into a recession. Retail sales have decline 2.7 percent and was the worst one month fall seen in the past three years, as well as being well below expectations of a 1.6 percent drop. Large retailers took the biggest hit, seeing a year over year decline of 6.3 percent.
Forex Technical Reaction: The yen has weakened slightly after this report was released. The pair is currently oscillating near the 20 day moving average at 90.35.
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