Influence of Retail Sales Data in the Forex Market

Influence of Retail Sales Data in the Forex Market

The Influence of Retail Sales Data or Retail Data Sales In the Forex Market is a very interesting topic to note regarding fundamental analysis in the forex market, especially for those of you who are forex traders. Sales retail data is data that shows the level of people’s ability to spend their money which is also an important component of a country’s economy. If the community including you and I keep spending money, the economy will continue to grow.
Retail sales data can illustrate the trend of consumer purchasing power which will have a direct impact on a country’s economic strength. In America and some other countries retail or retail sales data is released every month usually 2 weeks after the month ends. And in detail the data of retail sales are divided into 2 items, namely consumer goods that are durable (consumer durable goods, hold 3 years) and consumer goods that are not durable (consumer non-durable goods, hold for less than 3 years).

Influence of Retail Sales Data in the Forex Market

If retail sales data or retail sales data are better than the previous data, then it can be ascertained that a country’s economy is indicated to be growing, which is reflected by the increasing level of public purchasing power which gives an increasing inflation tendency. Rising inflation rates will cause the central bank to increase interest rates and the strength of a country’s economy will lead to a stronger exchange rate.
And also the opposite is true if retail sales data or retail sales data are worse than estimates or previous data it can be ascertained that a country’s economy is indicated to be contracting and allows the central bank to reduce interest rates so that the exchange rate of the currency weakens.
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