The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Will the recovering US retail sales boost the USD?
The US retails sales are announced on Tuesday at 15:30 MT time.
Instruments to trade: EUR/USD; USD/JPY; GBP/USD; USD/CAD
April was a disastrous month for the US sales which sank more than 16%. The effect was even more hurtful as it was far worse than the expected -12%. May, however, is supposed to reflect the start of recovery. As unnoticeable as it usually goes, this indicator may be crucial this time in defining the stock market’s mood as it’s been on a bullish trend alarmingly against raw data. On the other hand, if the sales indeed show that the economy is confidently picking up, that will definitely boost the USD and launch the stock market into another bullish wave. The expectation is at -10% hence whatever comes higher than this will be taken as good news.
- If the retail sales reflect a confident recovery, the USD will rise.
- If the sales are slow to recover, the USD will fall.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.