US Dollar Price Volatility Report: USD/JPY Eyes Retail Sales Data

Blue Forex charts with green growing arrow and dollar coin

The dollar was on the back foot, which helped advance yellow metal towards the end of the week. The US dollar fell against most major pairs except the Japanese yen and the Swiss franc. Versus major European currencies, the US dollar reached weekly highs. It has gravitated greater towards its 100-daysimag movement having greenback attempts to reverse some recent inconvenience. It stands firm against most of its G10 peers, backed by better than expected retail sales and factory orders that show both signs of steady economic growth in the world’s largest economy.

The chart shows how the daily pair broke 50 day moving average (MA) resistance and continued its higher uptrend last week. It is used to analyze the medium-term trend, which is the next month of price action. Chart prepared by James Stanley Going to the USD rebound to start Q3, EURUSD is pulled back to test a support zone as indicated in the previous resistance. Chart prepared by James Stanley Forex Trading Resources DailyFX offers a wide variety of tools, indicators and resources to help traders. The weekly chart is used to give an idea of ​​the longer-term perspective, which includes the coming months. It shows that the pair is growing strongly from recent lows, which were near the major low 2016 October. A weekly chart of the US dollar leads to the wedging light therse patternseemingly wedged table from the DXY index from mid-2017.

Gold costs fell on Friday with the craving for food fueled by the hope that the US-China commerce talks could make progress. House prices rose at a fast pace in 6 years while consumer credit rose to the tune of 577 million pounds. They remain within their dominant, gradual rise daily-chart and, with little overbuying signal in the momentum indicators, could maintain their upward polarization. During the night (Globex) prices are shown on the page until 19:00 CST, after which it will list only trading activities for the next day. At the end of the day the prices are updated at 20:00 CST every evening, and include the previous session volume and open interest information. intraday futures prices are 10 minutes late, according to the exchange rules, and are listed in CST. Retail sales (MoM) (August) with the Australian dollar seeing strength in recent weeks, there are risks that the RBA might try to talk down about Aussi.

Until a few weeks ago, investors had fully economic in a new quarter-point rate hike by the end of the year, and also saw an 80% probability for a second. In addition, they will have to pay attention to the performance of the major Wall Street indices to see if the risk-on-flows continue to dominate the market ahead of the weekend. Once the markets have closed, the last price will show one of the after the price, which indicates the price is set for the day. I am no longer so sure that the Fed will cut rates in June as the CME FedWatch probability instrument of a June reduce to around 20% in early European exchanges on Monday shows. Beyond the Fed’s September meeting, which will provide markets with updated economic projections, rate traders are currently waiting around 75 basis points for cuts in the federal funds rate before the end of the year. The futures markets are not necessarily turning hawk following retail sales. US consumers could be repressing their purse strings in response to recent fears of recession induced by US-China trade war uncertainty andslowing global GDP growth.

Judging from the volatility implicit options, expected dollar price action over the next week seems to be undervalued in view of the risk of a daunting event posed by Jackson Hole, which has historically triggered sizable market reactions. Expectations for a dovish meeting of the Fed fell following the retail sales report. Australian dollar the progress made on the Prevention of RBA by more further rate cuts The typical hypothesis for monetary policy decisions is that, when there is no change in the course, there is no change in the currency.

Economic data continued to paint a rosy picture for the US economy recently, which leads market participants to prices in a slightly more aggressive rate path for the Fed for the rest of the year.

The data simply suggests that expectations for a rate cut have moved a little later in the year than earlier than expected. There is no inflation out of the euro zone scheduled for release tomorrow which can trigger some short-term volatility.

As such, data on lackluster retail sales fails to inspire confidence regarding the soundness of the US economy. Recent surprisingly strong data concerns has facilitated the UK may be entering a recession, but economic data are likely to play only a minor role in Pound’s trajectory. Although the initial jobless claims data carries less weight than the closely watched non-farm payrolls, the weekly figures can serve as a precursor to the PFN title relationship.