Euro Falls After Weak Eurozone Retail Sales Data

(RTTNews) - The euro weakened against most major currencies in the European session on Friday, after Eurozone retail trade volume decreased in September after rebounding in the previous month.

Data from Eurostat showed that the Eurozone retail sales dropped 0.7 percent on a monthly basis in September, reversing August's 0.4 percent increase. Economists had expected only a 0.1 percent slight fall.

Sales of non-food products dropped 1.2 percent, and those of food, drinks, and tobacco were 0.3 percent lower. Meanwhile, automotive fuel in specialized stores increased 1.0 percent.

On a yearly basis, the growth in retail sales moderated to 0.4 percent in September from 1.3 percent a month ago.

In the EU, total retail trade contracted 0.6 percent monthly, while it grew 1.9 percent from last year.

These numbers point to ongoing weakness in European household demand, which might have an impact on the region's prospects for economic development and restrict the Euro's (EUR) ability to rebound.

European shares fell sharply as the Democratic Party's sweeping wins at this week's midterm elections in the U.S. sparked fears of a slowdown in the pace of AI infrastructure development.

Investors also digested weak data that showed German industrial output expanded 0.7 percent on a monthly basis in September, slower than the revised 1.0 percent rebound in August.

On a yearly basis, industrial production rose 0.4 percent in September, slower than the 0.7 percent increase in the prior month.

In the European trading today, the euro fell to a 5-month low of 0.9127 against the Swiss franc, from an early high of 0.9164. If the euro extends its downtrend, it is likely to find support around 0.90 against the franc and 1.10 against the greenback.

Against the U.S. dollar and the yen, the euro dropped to 4-day lows of 1.1168 and 176.16 from early highs of 1.1235 and 177.17, respectively. The euro may test support near the 174.00 region.

Looking ahead, U.S. and Canada jobs data for October, Canada Ivey PMI for October, U.S. Michigan consumer sentiment for November, U.S. Baker Hughes oil rig count data and U.S. consumer credit for September are due to be released in the New York session.