Geopolitical factors and inflation remain the main drivers of financial markets. Let’s see how to use that in trading!
Is the GBP vulnerable to the retail data?
Great Britain will release the retail indicators at 11:30 MT time, on February 20.
Instruments to trade: GBP/USD, GBP/JPY, EUR/GBP
The indicator of retail sales shows the monthly change in the value of inflation-adjusted sales at the retail level. It helps to understand how much money consumers spend, that is, how economically active the population is. A higher level of indicator increases the value of domestic currency. Last time the level of retail sales declined by 0.6%. The disappointing release increased concerns over the negative impact of Brexit. As a result, the British pound weakened.
• If the actual level of retail sales is higher than analysts’ expectations, the GBP will rise;
• If the actual level of retail sales is lower than analysts’ expectations, the GBP will fall.
The United States will publish Flash Manufacturing and Services PMIs on Tuesday at 16:45 GMT+2.
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The US Bureau of Labor Statistics will announce average hourly earnings, nonfarm employment change (NFP), and the unemployment rate on July 8, at 15:30 MT time.
The Federal Open Market Committee, a committee within the Federal Reserve, will reveal a detailed record of the central bank’s last meeting on July 6 at 21:00 MT.
The Reserve Bank of Australia will announce its cash rate and make a statement about future rate policy on Tuesday, July 5, at 07:30 MT.