By Anton Eljwizat – We at ForexYard, encourage our customers to get involved in the most intense market events. As such, we think you should know that British CBI Realized Sales figures are expected tomorrow, May 27th, 10:00 (GMT), and you need to be prepared. Market events like this one tend to create either big changes to current trends or push current trends even further. Generally, the majors are the ones most affected by market events in general but Crude Oil, Gold prices, and even the price of Silver can change dramatically in the seconds after such a publication. For more information about the British CBI Realized Sales, please read below.
WHAT IS THE “CBI Realized Sales”?
Confederation of British Industry (CBI) is an indicator that is being used to measure the level of a diffusion index based on surveyed retailers and wholesalers. It’s a leading indicator of consumer spending because retailer and wholesaler sales are directly influenced by consumer buying levels. This indicator is released on a monthly basis and is seasonally adjusted.
Traders follow this survey very closely because consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices can force a central bank to raise interest rates to tame inflationary pressures.
How This Survey Can Help the British Pound?
The government report this week is expected to show that the CBI Realized Sales will probably rise to 14 in May, according to estimates, from 13 during the prior month. If the CBI Realized Sales data will come in-line with expectations or higher, the GBP may see its bullish trend continue based on the trade balance’s value. With a release of this nature, traders may witness the GBP resume its bullish run and probably test the 1.4600 price level against the USD once more.
How This Survey Can Hurt the British Pound?
However, if the number will turn out to be lower than forecasted, this might weigh on the British currency since it would be consistent with fears that the British economy is at risk of entering a deeper economic recession. A negative release of this kind may actually force the GBP into a bearish correction, testing the 1.4200 level against the USD in the short-term.
Forex Market Analysis provided by Forex Yard.
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