During the European session, we anticipate the release of the British retail sales for October at 11:30 MT. Analysts predict an increase by 6 basis points. Higher digits will support the British pound, which is rising amid the current Brexit optimism of an approved draft Brexit agreement by the cabinet of Ministers.
The United States is awaiting the releases of retail sales and core retail sales at 15:30 MT time. Experts forecast the total retail sales to increase by 0.6% in October. At the same time, the level of retail sales excluding automobiles will rise by 0.5%. Higher-than-expected levels will be supportive for the greenback.
In addition, the speech by the Fed Chair Powell at 18:30 can bring some optimism to US dollar bulls.
Earlier, Fed Chair Jerome Powell could not help the USD to recover from the weak CPI release. On H4, the US dollar index could not hold its price at 97 level. If the USD gains support today from the retail release, it will rise towards the resistance at 97.21. Otherwise, it can test the 50 MA and extend falls towards the support at 96.35, if the Fed Chair fails to deliver a positive message.
Now let’s look at GBP/USD chart. Yesterday the GBP got the support after the draft Brexit agreement was approved by the Cabinet. However, the doubts are still circulating among the ministers and result in uncertainties for the GBP traders. If today’s release of the retail sales is higher than expected, the GBP will rise above the resistance at 1.3035. If more negative news on Brexit is published, it will fall towards the support at 1.2896.
For a long time, traders considered American Non-farm Payrolls (NFP) the most important release in the market. However, the situation has changed. Now US CPI moves financial markets.
The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
It seems like most of the assets have joined Black Friday's sell-off with global indices, risky currencies, and commodities going down.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.
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Don’t waste your time – keep track of how NFP affects the US dollar and profit!
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