Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Will the economic data drive the USD up?
What will happen?
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15. American economic recovery has been the prevailing topic for traders in the past few months. It seems like everything depends on it: the better the US figures, the higher the probability that American central bank, the Federal Reserve, will start increasing interest rates. Higher rates, in turn, will make traders buy the greenback and sell gold.
Notice that in April US retail sales unexpectedly stalled as the boost from stimulus checks faded, while PPI spiked 6.2% for the 12 months ended in April.
How to trade on the US data?
Ahead of the release, determine support and resistance levels for the pairs that have the USD in them. If the difference between the forecast and the actual number is big, the price will likely break those levels.
- If the actual figures exceed forecast levels, the USD will rise.
- If the releases disappoint, the USD will fall.
Instruments to trade: EUR/USD, USD/JPY, USD/CAD, XAU/USD
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.