Dow Jones futures pare earlier gains with Retail sales in the spotlight later today

There is one important and potentially impactful US data release due out later today. At 1.30pm GMT we will see the January retail sales report. Sales grew by 0.4% in December, but the markets are looking for a lower reading last month. The consensus is for sales to have fallen back slightly, by 0.1% last month. Naturally, much will depend on the outcome and whether it is significantly wide of the mark in either direction, as to what FX reaction that will cause. Right now the dollar needs a strong number, but that is not what is expected. Anything markedly worse than the forecasts will not serve the US currency well. As usual the USD/JPY will be front and centre in any reaction, but also with the US stock markets near record levels, it will be seen there too. The Dow Jones is also front and centre today, due to its retail components and it was the worst performing major US stock market in relative terms yesterday. Nevertheless, it still gained 342 points. The index closed at 44,711. The futures price is just now pricing a lower reopening, currently around 44,650