US retail sales unexpectedly dropped in March

Official data released in the US today showed retail sales unexpectedly dropped in March.

Retails sales fell 0.3% m/m in March, compared to an expected rise of 0.1% following an upwardly revised February figure of 0.0%. Retail sales ex autos rose 0.2%, missing the estimate of 0.4%. Meanwhile, Ex-Autos and Gas rose 0.1% compared to the expected rise of 0.3%. Previous month’s print was revised higher to 0.6%.

Retail sales control group number also rose at a measly rate of 0.1%.

Drop in the retail sales is sending US dollar lower across the board and supports Fed’s view that it needs to stay cautious with more rate hikes.