Investing.com - Retail sales in the U.S. rose more than expected in July, boosting optimism over the strength of the economy and supporting the case for higher interest rates, official data showed on Thursday.
In a report, the U.S. Commerce Department said that retail sales increased by a seasonally adjusted 0.6% last month, beating expectations for a gain of 0.5%. Retail sales fell by 0.3% in June.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, rose by a seasonally adjusted 0.4% in July, matching forecasts. Core sales in June increased 0.4%, whose figure was revised from a previously reported decline of 0.1%.
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 1.1113 from around 1.1117 ahead of the release of the data, GBP/USD was at 1.5623 from 1.5627 earlier, while USD/JPY was at 124.48 from 124.47 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.58, compared to 96.60 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures pointed to a gain of 0.15%, the S&P 500 futures ticked up 0.1%, while the Nasdaq 100 futures advanced 0.2%.
Elsewhere, in the commodities market, gold futures traded at $1,117.40 a troy ounce, compared to $1,117.10 ahead of the data, while crude oil traded at $43.00 a barrel from $43.05 earlier.