The US dollar edged higher, while gold dipped down. Let’s discuss main news and market movements in detail.
How much will British retail sales drop?
The British retail sales will be announced on Friday at 9:00 MT time.
Instruments to trade: GBP/USD, GBP/CAD, GBP/AUD, GBP/CHF, GBP/JPY, GBP/NZD
Let us remind you that the British lockdown started on March 24. For two weeks from that day sales dropped by 27%! It happened as all the stores except supermarkets were closed. According to the British retail consortium, in comparison with 2019, this years’ March sales fell by 4.3%. That was the largest sales fall in the history of the UK. Even the panic-buying ahead of the quarantine didn’t help to increase the spending rate. As a result, the British pound plummeted. Now we are waiting for the retail sales data from the government. As the country extends the lockdown, the numbers will probably be disappointing.
If the retail sales’ indicator is greater than the forecast, the British pound will rise, otherwise – fall.
The market sentiment improved after the USA reported some decreasing in coronavirus hospitalizations. Gold dropped below $2 000 and the US dollar dipped down, while stocks surged. Let’s have a closer look.
The US NFP will be published on August 7 at 15:30 MT time.
Follow the report on August 14 at 15:30 MT time!
The market sentiment switched to risk-on. The US dollar is dipping down, while riskier assets are rising, especially the Australian dollar after the positive employment data. All eyes on US unemployment claims.
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