In the day ahead. Investors will shift their focus on data from the U.K and the U.S. From the British side. Retail Sales data for July will be in focus. Later on the day. The U.S will also report on retail sales. Any developments regarding the US-China trade war could affect the market today and tomorrow. That’s what you want to know about these stories for today:
- U.K Retail Sales data (Jul).
The U.K will report on Retail Sales (MoM) (Jul) at 08:30 GMT. Analysts expect the indicator to fall -0.2%, from 1.0% a month earlier.
- U.S Retail Sales data (Jul).
The U.S will report on Retail Sales at 12:30 GMT. The forecast is to inch down 0.3%, from 0.4% in the preceding month. Core Retail Sales is expected to remain unchanged at 0.4% as the previous month.
Also, the U.S will report on the Philadelphia Fed Manufacturing Index (Aug) at 12:30 GMT. The forecast is to fall 10.0, from 21.8 in the last month. Initial Jobless Claims is expected to rise 214K, from 209K a week earlier.
The impact on the market today?!
U.S Dollar Index:
Around Critical Resistance! We might see hesitation before the next Leg Up! Summary: The index is recovery above 97.20/97.65 levels. Main resistance comes at 97.87 levels. A halt is likely, it may test 97.65 before attempts to break above 97.87 levels. Anyway; above 97.87 aims 98.10/98.35 levels. Next resistance comes at 98.75/99.05. On the downside, below 97.20 will terminate the recovery mode (unlikely today) and revers risk to 96.82/96.30 levels.
Faces Corrective Pullback Threats. Summary: The pair sees pullback threats below 1.1170/1.1218 levels. Any rebound to this area will bring a selling opportunity. Support comes at 1.1100/1.1075 levels. A rebound is expected to 1.1135 levels. Anyway; below 1.1075 aims the 1.1015 levels. On the upside, Only a daily closing above 1.1218 levels will advance the pair higher to 1.1255/1.1282 levels. The conclusion: U.S data is likely to bring a selling opportunity.
The pair remains under pressure below 1.2105 levels. Current support comes around 1.2055 levels. Any rebound to the upside will be limited by 1.2105 levels. A clear break below 1.2055 will challenge 1.2000 levels. Next support comes at 1.1950/1.1900 levels. On the upside, above 1.2105 will bring limited gains to 1.2160/1.2220 levels. The conclusion: The GBPUSD sees a selling opportunity on the U.K/U.S data today.
Sideways within 105.50/106.96 is likely. The pair may spike to 107.50 before another falling. Below 105.00 will challenge 105.00 levels. U.S data may bring sideways move today as expected.
Sees sideways move within 0.6745/0.6830 levels. Above 0.6830 open 0.6900 levels. Below 0.6745 sees a fall risk to 0.6675 levels.
USDCAD: The pair is bullish with risk to 1.3350 levels. Support comes at 1.3290 levels. Above this level will keep pushing on 1.3350 levels. A break will aim the 1.3410 levels. Below 1.3290 sees a fall risk to 1.3220/1.3200 before another rising. The conclusion: USDCAD sees a buying opportunity on US data today.
US – Chinese trade war
Remember, any developments regarding the trade war between the United States and China may affect the market strongly. Any Tweets for Trump may turn the market upside down. Volatility could be seen.