Closing down a volatile week with the China crisis, view here the US Retail Sales CrowdTrading insights and the new weekly outlook from Trade360. The home of CrowdTrading –the world’s freshest approach to spotting and profiting from new market trends.
The new China crisis has once again set the cat amongst the pigeons, cratering stocks and indices, but numerous big events this week should cause some significant impacts. After Friday’s NFP report, the US Dollar registered positive movement prior to market close. The EUR/USD fell 10 pips, finishing at $1.0922.
Plan your position for the monthly Preliminary UoM Consumer Sentiment in the US on Friday at 15.00 GMT. The University of Michigan’s survey of consumers’ expectations about future price increases is considered to be a highly respected indicator of inflation. Last month, it generated decent 60-pip movement.
Don’t miss the UK Official Bank Rate announcement on Thursday at 12.00 GMT. If the Bank of England follows the USA’s lead and raises interest rates, it should power up the Pound against all major currencies. Last month, despite no change to the 0.5% rate, the GBP/USD pair moved 70 pips, delivering a profit of $190 on a $100 investment.
The Dollar also performed strongly against Sterling, The GBP/USD pair slipped 101 pips down to $1.4517.
Staying in the UK, the monthly number for Manufacturing Production is out on Tuesday at 09.30 GMT. British Factory output reacts very quickly to general economic conditions and a solid number is always good news for the Pound. Last month, a disappointing figure of -0.4% was reported instead of the forecasted -0.1%. Will there be an improvement this time?
Other key currencies to fall relative to the Dollar were the AUD, which dropped 59 pips to $0.6953, and the CAD. The USD/CAD rose up by 57 pips, finishing up at $1.4172.
Monthly US Retail Sales are set to be revealed on Friday at 13.30 GMT, offering the most valuable guide to US consumer spending, the core of the American economy. Good numbers are always good for the Dollar, according to the US Retail Sales CrowdTrading insights.
Last week’s good news for gold may have been a brief respite. Comex Gold dropped 0.89%, down to $1,097.90 an ounce, while Gold-Spot took a 0.43% hit, finishing the week at $1,104.15 an ounce.
China’s market crisis was immediately felt around the world. The DOW Jones dropped 1.02%, down to 16,346.45, the S&P 500 slipped 1.08% down to 1,922.03 and the NASDAQ dropped 0.98%, ending the week at 4,643.63.
The monthly US PPI (Producer Price Index) is scheduled to be released on Friday at 13.30 GMT. Revealing changes in factory prices which will be passed on to consumers, this event has real market-moving potential, driving up inflation and also the Dollar. December delivered a pleasant surprise, with a result of the 0.3%, way better than the forecast of 0.0%. A 37-pip move offered the opportunity for a $137 profit on a $100 EUR/USD investment.