Will the BRICS creation birth the Fall of the Greenback?
US Core Retail Sales
US Retail Sales is a commonly traded economic indicator in the forex market, as it provides insight into the overall health of the US economy. The US Census Bureau releases monthly reports on retail sales, which reflect the total value of goods sold by retailers based on a sampling of retail stores of different types and sizes across the country.
Traders and investors may use the information from US Retail Sales reports to make informed trading/investing decisions based on how they believe the market will react to the news. For example, if the report indicates stronger-than-expected retail sales, it may lead to a rise in the US dollar against other currencies and vice-versa.
The previous figure was -0.4%, and the United States Census Bureau is indifferent as to what the retail sales figure would be, making the forecast the same as previous -0.4%
With a keen look at the GOLD Daily Chart above, we see the formation of two major reversal patterns – a rising wedge and an RSI divergence a few pips away from the daily resistance it created over a year ago, and this technically signifies a potential reversal. While this is a possibility, price could also push up to the resistance zone, to fill in some pending orders by the Big Banks before it makes its way back down.
If the actual release is greater than the forecast, it is good for the currency, which means strength for the Dollar and a decline for GOLD – all things being equal.
Why do Investors and Traders care?
Strong retail sales data is generally viewed as positive for the US economy and can lead to an increase in demand for the US dollar. This is because strong retail sales data indicates that consumers are spending more money, which in turn, leads to a stronger economy. A stronger economy can lead to higher interest rates, which can attract foreign investors looking for higher returns on their investments. This, in turn, leads to an increase in demand for the US dollar. But, will the creation of the BRICS nation allow the US Dollar hold its relevance globally, as there is a shift in what they consider a global currency thereby affecting the rate of its usability?
Now reach out for your ACT Trading platform, mark up your USD pairs, FUND your trading account if you are yet to, and position yourself to ride the economic wave.
US Dollar Pairs you can trade include USDCHF, USDCAD, USDJPY, AUDUSD, EURUSD, GBPUSD, NZDUSD, XAUUSD (gold), XAGUSD, BTCUSD, ETHUSD, US100, US30, US500, APPLE, FACEBOOK, NETFLIX, COCA-COLA, FORD and so on.
Schedule for The US Retail Sales release: Friday 14th April 2023. 1:30 pm (W.A.T)
Author: A.A. James
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