EUR/USD Turns Bullish as Analysts Forecast Declining Retail Sales in the US
Last Updated on August 17, 2021
United States – Retail Sales
On Tuesday, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.
Retail sales data are considered by Forex traders to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.
Last month, the US retail sales value increased by 0.6%. Analysts are expecting that this month, it would likely decrease by -0.2%.
Eurozone – Producer Price Index
On Friday, at GMT 6:00 a.m., the Destatis will release the German Producer Price Index (PPI). It measures the changes in the price of sold goods by the German manufacturers in the previous month.
Manufacturers increase their prices when the cost of production goes up. Hence, CFD traders consider the German PPI to be a leading indicator of the overall German consumer inflation. Also, its consumer inflation situation can have a substantial impact on the valuation of the Euro.
Last month, the German PPI went up by 1.3%. This month, analysts are expecting it to grow at a much slower pace, at 0.8%.
Since the end of May 2021, the EUR/USD fell by around 560 pips. Last week, it briefly came close to the 1.1700 level but then started a bullish retracement. Last Friday, it managed to close above the major resistance near the 1.1770 level. This week, so far, the EUR/USD has remained range bound and tested the 1.1770 level several times. Currently, it is trading just above this resistance.
The US retail sales will likely go down by -0.2% over the last month. On the other hand, the German PPI will likely slow down but still have a positive growth of 0.8%. We believe it would set a bullish fundamental outlook for the EUR/USD this week. Therefore, if the EUR/USD closes above the resistance near 1.1770, it would likely attract additional bullish momentum in the market.
Hence, CFD traders should look out for trading opportunities above this major resistance level around 1.1770.
- GBP/USD Likely to Resume Downtrend Amid Forecast of Lower Unemployment Rate in the US - January 4, 2022
- USD/CHF Likely to Remain Bullish Amid Forecast of Improving Durable Goods Orders in the US - December 20, 2021
- USD/JPY Bullish Momentum Likely to Continue Amid Forecast of Increasing Inflation in the US - December 7, 2021
EURUSD falls before the results of the European Central Bank meeting
EURUSD witnessed a decline in the morning of Thursday's trading in the European market after…
EURUSD moves away from three-week highs after US inflation data
EURUSD fell on Friday morning in the European market, and recorded its first daily loss,…
EURUSD continues to climb to the highest level in three weeks
EURUSD continued to achieve gains on Friday morning in the European market, and recorded the…
GBPUSD continues to decline for the second day after negative data
GBPUSD continued to decline in the morning trading on Friday, and recorded the second consecutive…
EURUSD continues to rise, hitting its highest level in two months
EURUSD continues to perform positively on Friday morning in the European market to reach its…
GBP/USD Likely to Resume Downtrend Amid Forecast of Lower Unemployment Rate in the US
United Kingdom - Net Lending to Individuals On Tuesday, at GMT 9:30 a.m., the Bank…