UK Retail Sales | October 17, 2013 | Currency Trading
UK Retail Sales is another high impact release out of UK this week, and because of the recent exaggerated appreciation of Sterling, a weaker surprise would drive the GBP lower, but we’ll defintiely jump in if we get our tradable deviation…
4:30am (NY Time) UK Retail Sales Forecast 0.5% Previous -0.9%
DEVIATION: 0.5% (BUY GBP 1.0% / SELL GBP 0.0)
The Trade Plan
The monthly retail sales report is a direct measurement of consumer activities at the retail level. A higher release is generally good for the economy, and better for it´s currency; a lower release is considered negative for the economy and not good for it´s currency.
Our tradable deviation or surprise factor for UK Retail Sales is 1.0% to BUY and 0.0% SELL. If our deviation is hit, we can expect the market to move at least 50 pips within the hour;
We´ll be looking for an after-news retracement trade for this release. For more information on my trading methods: https://www.currencynewstrading.com/how-to-get-started-with-news-trading/
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: GBPUSD.
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.
Definition UK Retail Sales
measures the value of sales at the retail level. A rising trend has a positive effect on the nation�s currency because Retail Sales make up a large portion of consumer spending, which is a major driver of the economy and has a sizable impact on GDP. Traders payclose attention to Retail Sales because it is usually the first significant indicator of the month that relates to consumer behavior and is susceptible to surprises.