Forex Trading TV Video Blog

Yesterday, the USD had a very strong trading day supported by a bullish trend. The greenback’s positive momentum occurred because of the better than anticipated Retail Sales report. Although the other economic data released from the U.S. was less than forecasted, Retail Sales and Core Retail Sales were the most important events of the day and the main factor behind the USD’s trading trend.

The USD’s momentum started at 12:30 GMT yesterday after the Retails Sales were released at a rate of 1.0%, 0.5% better than expected. Core Retail Sales saw a bump to 1.2%, also better than the expected 0.7% rise. Simultaneously, the Unemployment figure was released at a higher count than initially forecasted at 389K (19K more than expectations) and the Import Price Index was slightly lower than expected. Still though, both seemed to go unnoticed by traders as the Retails Sales drove the greenback’s bullish momentum. Later on, Fed Chairman Ben Bernanke held a speech at the Federal Reserve Bank of Kansas City; however nothing of any real surprise or significance regarding the USD or monetary policy was mentioned by him. Long terms traders should enjoy listening to the interesting words that have been heard from Republican presidential candidate John McCain who has been speaking out two days running on the need to strengthen the dollar and cut government spending.

Looking ahead to today, two economic released from the U.S. are expected to drive the Dollar’s trading trend. The main release will be Core CPI, which is forecasted to see a small rise and help return trader confidence into the American economy. The Core CPI figure measures the change in the price of goods and services purchased by consumers, excluding food and energy. Another important release will be the Preliminary Michigan Sentiment, which has been declining over the past two months and is expected to slightly fall again this month. Traders should expect a little bullishness out of the USD as long as the Core CPI’s result will be as forecasted and the Michigan Sentiment doesn’t fall too drastically and hurt the CPI driven momentum

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