European currencies continued their bullish run during the overnight session, as markets are still being influenced by yesterday’s disappointing US Unemployment Claims figure. Analysts are predicting that this trend will continue today, as news from the UK and US get set to generate market volatility to close out the week.
Here is a roundup of today’s main news events:
The British Retail Sales figure is considered one of the leading indicators of overall economic health in the UK. Following last month’s disappointing figure, the sterling took a bearish turn and fell against most of its main currency rivals.
Analysts are more optimistic about today’s figure. Most predictions are calling for the Retails Sales data to come in around 0.6%, far better than last month’s -0.8%. If true, the pound is likely to extend its recent gains.
13:00 GMT- Fed Chairman Bernanke Speaks
A speech from the Fed Chairman typically results in significant market volatility, particularly among USD pairs. Last week, Bernanke spoke of the ongoing problems in the US with regards to unemployment, after which the dollar turned bearish.
Given yesterday’s poor US unemployment figure, any further mention of the jobs situation by the Fed Chairman today is likely to send the dollar spiraling down further.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
