Explanation of U.S. Retail News Today?

[Rosemarie44]

Hi All

I'd really appreciate hearing from one of the experienced traders as to what the U.S. retail news actually means for the U.S. economy and trading FOREX. I would like to be able to interpret the news fairly accurately to take advantage of the moves around the announcement. I looked at USD/JPY but couldn't really work out if it was good or bad or if there was a conflict so if someone could take the time to break it down in "easy to understand" language I'd really appreciate that. Thanks in anticipation!

 

[Stony]

Hi Rosemarie,

I wouldn´t recommend trading forex on fundamentals such as retail news. The only thing you can predict about news is that there will be probably some movement at news times, but you never know its direction in advance. Besides, trading often gets irregular at news times. So, better rely on technical analysis.

 

[Ricex]

Have you read this yet, it may help

https://www.forexpeacearmy.com/forex-forum/forex-basics-boot-camp/2357-how-trade-fpas-forex-daily-trading-signals.html

 

[West Coast Pips]

Hi All

I'd really appreciate hearing from one of the experienced traders as to what the U.S. retail news actually means for the U.S. economy and trading FOREX. I would like to be able to interpret the news fairly accurately to take advantage of the moves around the announcement. I looked at USD/JPY but couldn't really work out if it was good or bad or if there was a conflict so if someone could take the time to break it down in "easy to understand" language I'd really appreciate that. Thanks in anticipation!

US retail sales has 2 components to it, Core Retail Sales & Retail Sales. Core Retail Sales is defined as the change in the total value of sales at the retail level, excluding automobiles. Why though? Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends. The other component, Retail Sales, is also referred to as the headline number. When trading this report, as I do every month, I focus on the core number, but also pay attention to the headline one. The 2 components rarely conflict but it can happen. If you are interested in actually trading this report use an auto clicker like Secret News Weapon. You will need to learn about triggers, deviations, revisions, etc.