The European markets will remain closed today because of Assumption Day, however, the UK Inflation, US retail sales, and crude oil inventories will be worth watching. The dollar index, which measures the performance of the Greenback against a basket of six major currencies, continues with its bullish momentum. The index is gradually approaching our target level of $97.25, the one we suggested in Aug 13 – Top Forex Setups to Trade – Dollar Index Hit’s Initial Target. Let’s see what we have to trade today…

Watchlist – Key Economic Events Today

GBP – CPI y/y

The Office for National Statistics will release the inflation data for the British economy. In the previous month, this figure was stuck at 2.4%, while economists are expecting a growth of 2.5% this month. This may not leave any impact on the market, until and unless the data is exceptionally high or low.

USD – Retail Sales m/m

The Census Bureau is due to release the retail sales data at 13:30 (GMT). It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity. In July, the retail sales grew by 0.4% vs. the forecast of 0.4%.

This month, economists are expecting a 0.2% rise in retail sales and 0.4% rise in core retail sales. A higher number of sales indicate a higher inflation and growing economy. So, the positive data will be good for the Greenback.

USD – Crude Oil Inventories

Commodity traders will be anxiously looking for the crude oil inventory data. As you know, crude oil often moves something like 100 or more pips on diverse inventories report, so it will be nice to capture a quick trade in it today. Anyway, economists are expecting a drop of -2.6M inventories last week vs. -1.4M earlier. The data can keep the oil supported.
Good luck for today and trade with care!