Retail sales in the U.S did not change in the prior month which is lower than expected with a 0.1% increase. The gasoline price index dropped 7.7% followed by declines in motor vehicle & parts dealers (-1.6%), clothing & clothing accessories stores (-0.6%) and at department stores (-0.5%). Excluding gasoline stations, sales rose 0.2% (vs 0.6% in June) while core retail sales rose about 0.8%. Presumably, sales easing since the February data by the rising inflationary prices. 

However, the E-mini S&P 500 fell by about 0.7% and the Nasdaq Futures fell by about 1.2% in the New York trading session while the markets seemingly found short covering and buying in the current uptrending structure around the month’s upper-value extreme. Both indexes test the Year’s developing VWAP for selling on the monthly interval which are both up as buyers targeting the upper standard deviation level of the Year’s VWAP perspective. 

The lower retail sales might be an additional easing factor for the surging inflation which is fought by the interest rate hikes, hence a current decrease in sales with lower demand might benefit the dollar against the major global currencies for the very moment which pressures commodities’ prices despite of the common fact that higher sales would increase the use of the particular currency which would boost its value. The dollar trades up by about 0.3% while the market is testing swing highs for resistance around the Quarter’s developing VWAP as buyers of the greenback may target the upper Quarter’s value area. 

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