As Italy battles its debt contagion fears and struggles with its ailing financial system, a report out this morning revealed that Italians also appear to be holding on to more of their earnings than assumed. The monthly retail sales report out of Italy has less impact on the strength of the regional currency, the euro (EUR), but if the Italian economy continues to flop, larger ripples may become a cause for concern.
The report was expecting approximately 0.2% growth in retail sales in Italy, up from last month’s contraction of 0.2%. The actual report, however, showed an eerily similar reading of -0.2%. With spending in decline, a stimulus may become necessary to get the Italian economy going once again.
Read more forex trading news on our forex blog.
Other relevant articles you may like
Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
