The U.S. dollar continues to trade bearish as per our forecast USD Completes 23.6% Fibo Retracement. The fundamentals also supported the profit taking in dollar especially after U.S. President Donald Trump blamed China and Europe of manipulating their currencies and said he was “not thrilled” with the Federal Reserve for hiking interest rates. Although the Fed rate hike is widely expected next month in Sep, the remarks from the POTUS do help sellers.
Watchlist – Key Economic Events Today
GBP – Public Sector Net Borrowing
The Office for National Statistics is due to release the news at 9:30 (GMT). For all the newbies, it shows a difference in value between spending and income for public corporations, the central government, and local governments during the previous month.
A positive number indicates a budget deficit, a negative number indicates a surplus. As per economists forecast, the data is expected to drop by -2.1B vs. a rise of 4.5B. But wait, it doesn’t mean a lower figure is gonna weaken the pound. Actually, it’s the opposite. Just think about it. It’s a borrowing figure and less borrowing means less supply of money in the market. Drop in supply causes an increase in the exchange rate. Thus, the sterling is likely to stay supported over this.
NZD – Retail Sales q/q
At 23:45 (GMT), the Statistics New Zealand will be releasing the retail sales data for the New Zealand economy. I must say, that’s the only economic event which can impact the market today. In fact, you should watch FX Leaders economic calendar for live coverage of these economic events.
As per economists forecast, the retail sales data are expected to rise by 0.4%, beating the previous month’s data of 0.1%.
Likewise, the core retail sales are expected rise by 0.8% vs. 0.6% previously. For your info, core retail sales also show a change in the total volume of inflation-adjusted sales at the retail level, excluding automobiles and gas stations.
As you can see, we don’t have much on the economic calendar today which is why the movement in the market is almost muted. Yet, we will have a chance to trade the choppy markets simply by selling at the top and buying at the bottom. Stay tuned to FX Leaders for technical trade setups and forex trading signals!