As the final trading day of the week gets underway, both traders and dealers will be wondering whether today offers a catalyst for a new US dollar direction. Over the past few days, many currencies have been stuck in small ranges against the buck (GBPUSD 1.30 – 1.31 and EURUSD 1.1750 – 1.1850). Today’s US economic numbers could help shape the path forward.
It’s been a mixed week for the greenback so far, while congress has once again failed to agree on a stimulus package, the number of individuals claiming employment benefit for the first time finally fell below 1 million per week. The last time this was the case was over 3 months ago! Regardless of these developments, the greenback has held firm, neither pushing higher nor lower. It’s range traded against the majority of its peers but that could well change today.
2 key economic reports will be released, both are leading indicators and ones which could, depending on their outcome, give participants a reason to push the buck out of its recent ranges. First up, July retail sales. Estimates are for a slower pace of increase, rising by 1.3% month/month. The second piece of data comes in the form of consumer sentiment which is expected broadly in line with the previous month’s release. Watch this space…
Written by Viv Savani. 8:26am, August 14th 2020
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