By Rita Ruvinski – The day ahead is busy with data releases, and many of them of high importance to markets. Foremost will be U.S. retail sales and the ZEW sentiment, but also of interest will be the British CPI and U.S. Business Inventories.
8:30 GMT: GBP- CPI
Contrary to the U.S. and Europe, Britain saw the annual rate of inflation rise above the 3% target. CPI dropped gradually to 3.1% and is now expected dip to an annual rate of 2.9%. This is expected to weaken the Pound.
9:00 GMT: EUR – German ZEW Economic Sentiment
The important German ZEW Economic Sentiment is the highlight among market events that will shape the EUR/USD trading this week. This survey of 350 analysts and investors always rocks the euro. In the past 4 months, it has shown significant drops, short of expectations, reaching 14 points last month, still in positive territory, meaning small economic optimism. Another drop is expected now which means the pair has the potential of falling below $1.2660.
12:30 GMT: USD – Core Retail Sales/ Retail Sales
The retail trade report for August could be slightly stronger than expected. This major consumer gauge recovered last month after terrible falls beforehand. Retail sales are predicted to rise by 0.4%, exactly like last month, and core retail sales will probably rise by 0.3%, slightly better than last month’s 0.2% rise. Any result will rock the markets.
14:00 GMT: USD – Business Inventories
Data on business inventories for July will add the retail component to those already known for wholesale and factory inventories. A better than expected data will rock the greenback.
Forex Market Analysis provided by ForexYard.
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