On September 15 at 8:30 am EDT (12:30 pm EET) The US Census Bureau will release the next US monthly Retail Sales. It’s a highly tradable release anticipated by both economists and investors. A higher rate will make the USD stronger, while the low reading will bring it down for a while.The US Retail Sales can be a great trading opportunity for new and experienced traders since on the day of the release you can notice relatively high volatility in stocks and Forex market.

 

How to trade:

1/ Focus on the USD and short term options

2/ Check how far is the new figure from 0,4% (current forecast or so called consensus)

3/ A number which is higher than the forecast is supportive (or bullish) for the USD and, on the contrary, the low number is generally negative (or bearish)

What’s the Retail Sales:

The U.S. Retails Sales (or MoM/month on month) is the important economic indicator, which indicates the consumer spending level for the past month and overall state of the economic activity. It estimates the value of consumer goods within a month by conducting a survey among the retail firms located in the United States, starting from an average vending machine and ending with the gigantic Wal-Mart. It consists of 2 parts: a total sales figure (the same percentage that you need to check first) and Ex Autos (without the data of ticket price and auto sales).

Why this is your chance to profit:

Besides being one of the biggest and most influential economic indicators, it can literally change trends and move markets in the new direction. Among the experienced traders, It’s also known as the vital predictor of inflationary pressure. Even a quick hike in it can be followed by the immediate rise in FED’s interest rates. However, if the retail sales growth is going slower than expected, it could be a signal of recession and a perfect time for the investors to trade on the weak dollar.