The numbers detailing the rate of change for American Advanced Retail Sales are set to come out tomorrow 13 February 2014. At this time, many experts believe that the figures will show a decline in sales while staying above negative growth. The report will cover the numbers for the month of January 2014.
Readers are reminded of the importance of this report as it relates to spending on consumer goods, which is estimated to comprise nearly a third of all US consumer spending. Consumer spending is believed to make up two thirds of American economic activity. As such, changes to this rate have shown in the past to have a significant impact on the market. It is also an important indicator for the level of growth and health in the economy as the amount of sales can often be expected to match confidence in the ability of consumers to purchase said retail products.
Analysts note that a slowdown in the levels of production occurred during the months of December 2013 and January 2014 as fewer hires were made over those months in comparison with the record high of November 2013 that helped lead to the tapering of the stimulus by the Federal Reserve. It should be noted however that while the job numbers for January 2014 were somewhat disappointing to many observers in the amount of jobs added, they were sufficient in further lowering the overall unemployment rate in the US.
Analysts believe that while a drop in the figures that are likely to come out in this report may negatively affect the dollar in the short term, there appears to be growth in the American economy that will boost it back up in the coming months. As such, traders are advised to watch for some volatility for the USD in trading over the next few days.
British Inflation Report Comes Out Today
The report relating to the level of inflation in the United Kingdom is expected out today 12 February 2014. At this time, experts are yet to announce their predictions on how they foresee the report on these numbers moving in this report. The report is being issued by the country’s central bank, the Bank of England.
Analysts note that Britain has enjoyed significant growth over the past number of months, with rising housing prices and other positive indicators. most economists agree that the UK has been on the path to a strong recovery from the recession. However as the economy makes a comeback, there are mounting concerns that inflation could rise if left unchecked. Analysts point to the fact that the British government has brought on outside consulting firms to help them restructure many of their internal workings as well as to guide their policies moving forward.
Analysts do not believe that the release of this report will lead to any immediate shifts in the value of the pound over the short term. That said, the findings of this report could be an indicator regarding potential adjustments to the Bank of England’s monetary policy over the coming months.
Australian Employment Data to be Issued Thursday
The two key reports describing the current state of employment in Australia are due to be released tomorrow 13 February 2014. The reports expected out are the Employment Change and the Unemployment Rate. At this time, many experts have stated that they foresee a positive reversal in the Employment Change numbers following last months significant job loss. Despite this expected growth in the number of jobs added to the workforce, the Unemployment Rate is expected to rise slightly.
Analysts note that employment has been a concern in Australia in recent months despite other positive movements in the economy. It was reported today 12 February 2014 that the Aussie was trading at a four week high after reports showed an increase in Chinese trade, a major factor influencing the Australian currency. Moreover, in his last statement made to the press on 2 February 2014, Reserve Bank Governor Glenn Stevens issued remarks indicating that the central bank will likely maintain their current monetary policy in the months to come, thus adding stability in the minds of investors on the near term future of the Aussie.
Analysts do not expect that this report will have any significant negative effects on the value of the Aussie in trading, despite the possible rise in the overall Unemployment Rate.