This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
All eyes on US retail sales
What will happen?
US retail sales will be out on Thursday, April 15, at 15:30 MT. It is a significant release for traders as it will impact the US dollar – the most traded currency in the Forex market! Retail sales are the primary measure of consumer spending, which, in turn, reveals the overall economic activity. The last report showed US retail sales dropped by 3.0% in February, falling short of analysts’ expectations of -0.5%. It was the biggest decline since a record drop in April of 2020. However, things are getting better in the USA as more and more people are getting vaccines, and restrictions are easing. Thus, maybe this time the numbers are encouraging.
How to trade on US Retail sales?
What you need to do is just compare the actual numbers with the forecasted, which you can check on our economic calendar. And then,
- if US retail sales are better than expected, the USD will surge;
- if worse – the USD will fall.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.
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