Investing.com - Retail sales in the U.S. rose more than expected in November, fuelling optimism over the strength of the economic recovery, official data showed on Thursday.
In a report, the U.S. Commerce Department said that retail sales increased by a seasonally adjusted 0.7% last month, beating expectations for a gain of 0.4%.
Retail sales growth for October was revised up to a 0.5% increase from a previously reported gain of 0.3%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, advanced by a seasonally adjusted 0.5% in November, easily surpassing forecasts for a 0.1% increase. Core sales in October rose by 0.4%.
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 1.2430 from around 1.2437 ahead of the release of the data, while GBP/USD was at 1.5683 from 1.5690 earlier, while USD/JPY was at 118.52 from 118.47 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 88.39, compared to 88.34 ahead of the report.
Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures pointed to a gain of 0.25% at the open, the S&P 500 futures rose 0.35%, while the Nasdaq 100 futures tacked on 0.3%.
Elsewhere, in the commodities market, gold futures traded at $1,221.00 a troy ounce, compared to $1,224.30 ahead of the data, while crude oil traded at $60.56 a barrel from $60.60 earlier.