Retail sales data is one of the timeliest economic indicators of consumer spending. According to Henry Hazlitt, author of Economics in One Lesson, US consumers account for approximately 70% of the national economy.
The US and China have signed an agreement aimed at easing a trade war that has rattled markets and weighed on the global economy. Speaking in Washington, US President Donald Trump said the pact would be transformative for the US economy.
Although ranging more than 40 points on the session between 1.1144/1.1104, Tuesday concluded pretty much sideways. Intraday, a dip to lows just north of the 1.11 handle occurred, though price action swiftly recovered and traded to 1.1120+ amid US hours.
Pound sterling slipped lower Monday, pressured by lower-than-expected growth and manufacturing production data, as well as dovish comments from BoE’s Vlieghe.
Wednesday, in the shape of a 47-point downward move, overthrew not only the 200-day SMA (orange – 1.1139) but also a local channel support, taken from the low 1.0981. The nearby 50-day SMA (blue – 1.1090) entered the fold Friday, providing support by way of a bullish engulfing candle over Thursday’s doji indecision formation.
