British Holiday Retail Sales Report on Deck

December 17th, 2009 Posted in Daily Forex News

Name: Dan Eduard

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09:30 GMT GBP Retail Sales
- Change in the total value of inflation-adjusted sales at the retail level. The report is released monthly. The figure is a leading indicator of the health of the British economy, as it determines the rate of consumer spending each month. This month is especially important as it is the increased level of retail sales leading up to the holidays Christmas and New Years.

- Last month, British consumer spending increased by 0.4%, which translated into positive news for the Pound in trading.

- This month, analysts are predicting the consumer spending number to come in at 0.5%. If the forecasted figure does indeed come true, the Pound could receive a much needed boost against the U.S. Dollar.

12:00 GMT CAD Core CPI
- Monthly report indicates the change in consumer prices. The report is seen as a good indicator of inflation. The higher the Core CPI figure, the higher inflation is which could affect interest rates.

- Last month’s figure of 0.1% was more or less on par with previous months. Consequently, there has not been an increase in inflation, making a hike in interest rates almost impossible. This figure did not bode well for the Canadian Dollar in trading.

- Analysts are forecasting a number around 0.2% for this month. While this would mark a slight increase from last month, it likely will not be big enough to have any major impact on inflation. Therefore, the Canadian Dollar will likely remain stagnant for the time being.

13:30 GMT USD Unemployment Claims
- Weekly Unemployment Claims show the number of Americans who filed for unemployment benefits. The figure serves as an important indicator of the health of the American economy, and as to what direction the economy is headed. Generally speaking, low unemployment figures are good for the Dollar.

- Last weeks figure of 474K was a slight increase over the previous weeks, but was still relatively low. The Dollar received a subsequent boost from the figures and they were one of the contributing factors to its recent surge in the market place.

- This week, analysts are forecasting a figure around 466K. This would mark a decrease in the amount of unemployment Americans. If the forecasted number is true, the Dollar could receive a boost in trading against its major counterparts.