Today the US retail sales will be the highlight, the U.S. Census Bureau releases its retail sales report for the month of August which will give an indication into the strength of the US economy.
The US dollar pairs remain the centre stage of attention. The dollar index, which tracks the U.S. currency against six major peers reversed the early gains. On Tuesday, the greenback rebounded strongly and rise back to above 110 following the release of stronger-than-expected US inflation data.
For today all eyes will be turning to the August US inflation data which will give us the latest insight into whether inflation actually peaked in the short term. The consensus is that inflation will fall to 8.1% on an annual basis from July’s 8.5%.
The GBPUSD rebounded back to above 1.16 on Friday. However, the investors should closely monitor the release of the latest UK inflation report and Bank England rate decision for the future direction of this currency pair, both events are scheduled for next week.
Finally, the most awaited September European central bank monetary policy decision is due to release today. The meeting outcome could bring extra volatility to the global markets.