Daily Brief, Sep 20: Economic Events Outlook – Brace to Trade Retail Sales

Posted Friday, September 20, 2019 by
Arslan Butt • 2 min read

Happy Friday, traders.
The Greenback traded bearishly during the early Asian session as the central banks in Switzerland, and the UK abstained from supporting the Federal Reserve in lowering rates. Moreover, the risk appetite fell over caution about US-China trade discussions.

The dollar fell against the Japanese yen to trade at 107.85, also against the Swiss franc at 0.9910 per dollar. Whereas, the US dollar index traded at 98.22 area against a basket of major currencies.
Traders are also concentrating on US-China trade discussions in Washington, directed at setting the groundwork for high-level discussions next month.

Watchlist – Economic Events to Trade Today

BOE Quarterly Bulletin – 11:00 GMT

The Bank of England is due to release commentary on BOE rate decisions and economic performance.
Specifically, the bulletin includes commentary on market developments and monetary policy operations, along with reports on a range of domestic and international economic issues, market research, and market analysis.
By the way, the report tends to have a muted impact because some parts of the bulletin are released early. Let’s see how it drives GBP/USD today.

USD – FOMC Member Williams Speaks – 12:15 GMT

The Federal Reserve Bank of New York President John Williams is due to deliver a speech titled “Tying Down the Anchor: Monetary Policy Rules and the Lower Bound on Interest Rates” at the Swiss National Bank Conference, in Zurich at 12:15 GMT today.

Traders will be interested to hear his remarks, especially on the recent interest rate cut by the US Federal Reserve. Typically, the Federal Reserve FOMC members vote on where to set the nation’s key interest rates, and their public engagements are often used to drop subtle clues regarding future monetary policy.

Considering the mixed sentiments of the market, investors will be looking for a clear view about the upcoming monetary policy and rate.

CAD – Core Retail Sales m/m – 12:30 GMT

The figure shows a change in the total value of sales at the retail level, excluding automobiles. A higher number of retail sales signals growth in the economy.
Statistics Canada is due to release the figure at 12:30 GMT. Canadian retail sales surprised the market with a 0.9% jump in August. Let’s see how it performs this month to determine further trends in the Loonie.

The surge of 0.2% in core retail sales is on the cards today. However, it’s lower than 0.9% growth released previously.
Retail Sales m/m may help underpin the Loonie as it’s expected to report a 0.4% surge in retail sales, vs. 0.0% growth in August.

EUR – Consumer Confidence – 14:00 GMT

Later today, the Eurostat is due to report consumer confidence data. Basically, it’s a survey of about 2,300 consumers in Eurozone countries which asks respondents to rate the relative level of past and future economic conditions, including personal financial situation, employment, inflation, and climate for significant purchases.
Economists are expecting no changes to consumer confidence yet as the figure is forecast to be at -7 vs. -7. Since it’s August’s data, we may see improvement in consumer confidence next month amid rate cut and a fresh stimulus program.
Good luck, and stay tuned for more updates on technical trade setups today.

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