UK retail sales data in focus
Good day, everyone! Hope you’re all doing well as we look to get things going in the session ahead. It’s been a decent start to the day with the likes of the yen and franc gaining while the greenback lags slightly, meanwhile we saw the aussie pop a little after the labour market report earlier in the day.
The release saw the unemployment rate steady (in two decimal points terms, it ticked a little higher) amid a slightly higher participation rate than expected but overall the report is suggestive that the RBA will stick to its “if needed” stance in August and will be in no rush to cut its cash rate by another 25 bps at the time.
Looking ahead, there is little on the economic calendar once again so the main focus will continue to be on the ebb and flow as market participants continue to digest central bank and trade developments in the bigger picture.
0600 GMT – Switzerland June trade balance data
Prior report can be found here. The focus again will be to look at the exports/imports details to gauge trade conditions in the region. A minor data point.
0830 GMT – UK June retail sales data
Prior release can be found here. Consumption activity has been one of the “brighter” spots in the UK economy this year but has slowed down a little over the past two months. The slower activity is expected to continue into June and when you put that alongside slowing business investment, manufacturing and services in general, that’s why the economic growth is shaping up to contract in Q2. Much like the days before, the data here should do little to shift the dial in the pound in the bigger picture. But perhaps it could trigger a bit more short covering in cable on a meaningful beat, though I wouldn’t go chasing it still.
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading!
By Justin LowThu 18 Jul 2019 04:15:57 GMT
Source: Forexlive