By Greg Holden – The U.S. dollar has been rising for the past four days against most of its currency counterparts following statements by the Fed that measures will be taken to counter recent weakness. Market data has perked up slightly as a result and we could see further strength arising out of news events to be released later today.
Today’s leading news events:
12:30 GMT: USD – Retail Sales / Core Retail Sales
– Retail sales is a figure which provides a look into the status of the American consumer market, which in turn has a direct correlation with the demand for American goods, and thus the American currency required to purchase those goods.
– Retail sales are expected to have been on the rise this past month, and this data may already be playing a role in the recent rise of the dollar as speculators price in this forecast. If today’s numbers are in line with forecasts, the USD could continue to gain strength going into the weekend.
13:55 GMT: USD – UoM Consumer Confidence
– The University of Michigan’s consumer confidence report provides a modest glimpse into the grass-roots rumblings taking place about the American economy by small businesses and private consumers.
– When this figure is rising, it points to a growth in confidence about the future of the economy and signals that people are more willing to purchase and expand, which in turn fuels growth, optimism, employment, and demand; leading to a stronger USD. If the figure comes in line with today’s forecast, we could see the greenback rise a little bit further before the market closes for the weekend.
Forex Market Analysis provided by ForexYard.
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