Weak Forex Market Continues Before Key Data

  • Both the euro and the pound are denominated in USD
  • December retail sales in focus
  • Violence continues on Wall Street.

As the dollar index continued to weaken, the US dollar continued to weaken for the third day in a row. This is to the advantage of both the Euro and the Pound as the two currencies continue to rise sharply earlier this week. This comes on the economic calendar, another important day after the December retail release. Meanwhile, on Wall Street, stocks are looking to return from another challenging sell-off to end the week with a more positive note.

Both sterling and the euro benefit from a weak dollar

Euro forex trading was back in positive territory on Thursday and early Friday trading sessions. The pair closed at around 1,145 last day and the bullies on the pair expect to challenge 1.15 by the end of the week. ECB President Christine Lagardem has to say that although the common denominator is primarily focused on the weakness of the dollar rather than any of its own positives.

The same applies to sterling when the GBP / USD moves above the 1.37 mark. There was some more good news for the British side, though the November GDP growth rate was 0.9% on a monthly basis. This was better than the 0.4% analysts expected and could give extra strength to the pound.

Traders’ Eyes Retail Figures

Fox brokers and dealers in the United States are eagerly awaiting the release of retail data for December. Although figures are expected to remain largely unchanged, any differences will affect the dollar. A reversal of a three-day losing streak may provide some support for the dollar.

Further focus will be on federal and, in particular, commodity prices. 10-year production fell by about 2% on Thursday, putting pressure on the dollar. The recovery is expected to see more than 80% interest rates rise in March, with the dollar pushing up against its rivals.

Bank Income Focusing on Wall Street

On Wall Street, key figures for the day come not only from U.S. retail sales but also from major bank revenues when they report before the opening bell. This is a busy day of numbers and traders are hoping to recoup some of Thursday’s losses in a more positive way over the weekend.

All major indexes sold lower yesterday. Dow Jones was the youngest victim with a drop of less than 0.5%. The S&P 500 fell sharply by 1.4% towards the end of the day, and the tech-savvy NASDAQ lost more than 2.5% during the day. Traders are hoping for a better weekend.

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