Ive been away for sometime now , but nevertheless, here's a few price analysis I did .
The UK's Office for National Statistics (ONS) will be releasing the monthly retail sales report today. The data covers the period of March. Economists forecast that UK's retail sales declined 0.5% on the month. This comes after retail sales rose 0.8% in the month before.
The decline in the retail sales comes amid improving wage conditions and inflation which has remained largely stable. Despite consumer prices still above the BoE's 2% inflation target rate, inflation has remained steady compared to the previous months last year where consumer prices surged strongly.
Source: foreignexchnge.com
Economic data from earlier this week showed that the wage growth in the UK averaged 2.8% on the year. This was slower than forecast as wage growth increased at the same pace as the month before. However, the UK's unemployment rate edged lower to 4.2% after staying steady at 4.3% for the past few months.
The modest increase in wage growth is expected to put more spending power for the consumers. This could potentially translate to a slightly better than expected retail sales report. However, with the economists forecasting that retail sales might have declined 0.5%, we could expect to see a modest decline in the retail sales spending data.
Based on the above, today's forex trading signal is EURGBP. The currency pair was seen bouncing off the support level formed at 0.8620 over the week. The rebound off this level saw a brief retest near the support before price managed to push higher on the day.
source:fxcm.com
With the new support formed at 0.8695, we expect to see further gains in store in the near term. Therefore, we are looking to purchase daily CALL options at 0.8715 for a 21:00 GMT expiry time. We expect the minor consolidation to breakout into a rally and thus close higher on the day.
If you follow my analysis, you will profit in the market at the end of the day.
Alright guys, check out my next post .bye for now.
