On Wednesday, the U.S. dollar hit a three-week high against a basket of important currencies. Most of the bullish trend was triggered on the back of an optimistic outlook of the economy by the U.S. Federal Reserve. Whereas, oil prices continued a recent pullback and gold collapsed to a year low.
Today the economic calendar is light and there any very few events to trade. Let’s discuss these real quick…
Watchlist – Top Economic Events
Great Britain Pound – GBP
Retail Sales m/m
Retail sales are due to be released at 8:30 (GMT). As per economists’ forecast, the U.K. retail sales are expected to drop from 1.3% to 1%.
In my opinion, the retail sales are set to expand the economic growth in the second quarter after the particularly weak performance during the first three months of this year. Yesterday, the GBP/USD came under a strong selling pressure, hardly holding onto 1.3000 support level.
Well, it’s mostly due to the depressed inflation numbers from the U.K, ongoing discussions on Brexit and the stronger dollar.
U.S. Dollar – USD
Philly Fed Manufacturing Index
Philly Fed usually comes with volatility and trading opportunities. The index is expected to pick up from 19.9 to 21.6. There can be a nice buy opportunity in the Greenback if the index surprisingly gains more than 25/30.
At 12:30 (GMT), the Jobless claims will be monitored. This week, economists are expecting more claims (220K) than the previous week (214K), which can weigh on the dollar. Well, considering the given forecast of all the economic events, there’s no one-sided sentiment for the Greenback. Therefore, we have to wait until the actual releases to determine the direction of trades. Keep following us for more updates and exciting forex trading signals. Good luck for today!