Daily FX Analysis, Aug 15 – Major Trade Setups & Economic Events!

On Thursday, the U.S. dollar index continues to trade choppy due to lack of market-moving fundamentals. The market is currently trading the Risk-off theme which is driven by global slowdown across the board, for instance, a day before we saw weakening German data as well as a big miss on China data. As per Reuters poll of foreign exchange strategists, the Chinese yuan is likely to decline further beyond the current 7 per dollar rate across the upcoming year as Beijing steps back from managing the currency amid tariff threats from Washington. Bitcoin also remained in highlights, especially after BTC/USD found itself trading around $9,700, down a jaw-dropping 8% in the past 24 hours. This move surprised many traders as the drop came after Goldman Sachs analyst recently claimed that Bitcoin could soon hit $14,000, adding that BTC’s medium-term prospects are looking surprisingly bullish. Economic Calendar – U.S & U.K’s Retail Sales In Play! Retail Sales m/m – 8:30 GMT The UK retail sales, listed to be published later this session at 8:30 GMT, is expected to sink -0.3% m/m in May, following a 1.0% figure seen in June. Indeed, no-Brexit sentiments and ongoing geopolitical tensions between the U.S. and China is making consumers frightened which is causing a drop in retail sales. Worse than expected figures may put extra weight on Sterling today. US Retail Sales – 12:30 GMT The US economy is focused on consumption and inflation figures as this has been an opulent cause of the growth of late.

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