Forex traders will likely see another volatile trading day today, as a number of significant events are set to shake up the market. Large gains by the UK pound and US dollar in recent days will be tested, as both countries are scheduled to release important data. Trades will want to pay careful attention to the news, as fundamental data will likely shape the direction the markets take today.
10:00 GMT: GBP CBI Realized Sales
Confederation of British Industry ( CBI ) Realized Sales is a monthly survey of about 160 retail and wholesale companies which asks respondents to rate the relative level of current sales volume. CBI's index has been positive in the past 3 months, and has risen rapidly. The positive number means higher sales volume for retailers and wholesalers.
Analysts are forecasting a figure of around 40 today, following last month's result of 49. Should today's figure come in as predicted, sterling may see a slight drop in afternoon trading against its main currency rivals. At the same time, a higher than forecasted figure is likely to help the pound in the short term.
12:30 GMT: USD Unemployment Claims
Fewer US workers filed new claims for jobless benefits last week, but the net change over the past two weeks was not big enough to suggest any major improvement in the labor market. The U.S. jobs market remains weak even though the economy has been expanding at a steady pace for more than a year.
Analysts are predicting today's figure to come in at around 453K, slightly higher than last week's result. Should their predictions prove to be true, the dollar may weaken slightly in the short term. An unexpectedly good unemployment number on the other hand, will likely help the dollar hold onto its recent gains.