By Greg Holden – The US dollar appears to be on the rise since the end of last week. Climbing against most of its currency counterparts, the greenback has been gaining ground due to a rise in risk aversion. Should today’s figures from the US and Canada provide hints of a slowing economic growth, we could continue to see this risk flight gain momentum and drive safe-havens, such as the USD and JPY, slightly higher.
Today’s leading news events:
12:30 GMT: CAD – Retail Sales and Core Retail Sales
Retail sales measures the percentage change in sales of retail goods in a country since the preceding month. As this data comprises a large portion of a nation’s consumption and demand, it has a direct correlation with the strength of that nation’s currency. If Canada’s retail sales figures come in line with expectations for growth, the CAD should see some bullishness.
14:00 GMT: USD – Existing Home Sales
The sale of existing homes is one aspect of the housing market in the United States. With the housing market still recovering from the crash of 2007-2008, these figures have grown in significance for forex traders. With an expected decline in existing home sales this month, there is a chance that further investment will flee riskier assets and move towards safe havens, which seems to have become commonplace since the middle of last week. If the figures do come in line with expectations today, the USD could actually see a rise in value as a result of a flight away from risk.
Forex Market Analysis provided by ForexYard.
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