Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
British pound remains lower versus greenback
On Thursday, the British pound remained weaker versus the moderately stronger greenback notwithstanding data showing that British retail sales ascended at a faster than expected tempo in June.
The currency pair GBP/USD hit 1.2969, which is not far the day’s minimums of 1.2973.
According to the Office for National Statistics, retail sales grew 0.6% the previous month, in contrast with predictions for a 0.4% leap, having dropped 1.1% in May.
On a year-over-year basis retail sales rallied 2.9%, ahead of predictions for a 2.5% jump.
The soar was backed by warmer weather that helped to boost sales of summer clothing and compensate dips in food as well as fuel sales, as the ONS informed.
The report showed that consumer spending keeps holding up in the face of soaring inflation. It definitely erodes household incomes.
Inflation has abruptly accelerated since the previous year’s Brexit vote because the steep sag in the British pound bolstered import prices, provoking fears over a dip in living standards with wages lagging growing prices.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
The Reserve Bank of Australia (RBA) will make a statement and release a Cash Rate on February 7, 05:30 GMT+2. It's among the primary tools the RBA uses to communicate with investors about monetary policy.
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.
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.