US Retail Sales solid for January

Headline US Retail Sales for January were up 3.8% MoM vs an estimate of only 2% MoM. This was the biggest jump since March 2021. In addition, December’s print was revised lower from -1.9% MoM to -2.5% MoM. Also, January’s Retail Sales ex-Autos was 3.3% MoM vs 0.8% MoM expected and -2.8% MoM in December. Many analysts had estimated that a higher expected headline number would be due to the increasing auto sales (and increasing costs to auto sales), however that doesn’t seem to be the case. Retail sales ex-Gas and Autos were even stronger at 3.8% MoM vs 0.4% MoM expected! These numbers would suggest that people were spending in January, despite higher prices due to inflation!

What are economic indicators?

EUR/USD is hovering just above the 50 Day Moving Average at 1.1328 and the top, downward sloping trendline of the channel that the pair has been in since May 2021. Horizontal resistance sits at today’s highs near 1.1395. If EUR/USD can trade above today’s highs and the horizontal resistance, it may be wide open for a move back to 1.1500, which has been capping any rallies as of late. Resistance is at the February 10^th highs of 1.1497 (very close to 1.1500). Above there, resistance on the daily timeframe is at the 127.2% Fibonacci extension from the highs of January 14^th to the lows of January 28^th, near 1.1581, and then the 200 Day Moving Average at 1.1649.

Source: Tradingview, Stone X

Trade EUR/USD now: Login or Open a new account!

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore

On a 240-minute timeframe, first support is at the top, downward sloping trendline of the long-term channel near 1.1300. Below there is a confluence of support at the February 14^th lows, horizontal support and the 61.8% Fibonacci retracement from the lows January 28^th to the highs of February 10^th between 1.1263 and 1.1280. If price breaks below there, if can fall to horizontal support at 1.1186 and then previous lows at 1.1121.

Source: Tradingview, Stone X

There is an adage on Wall Street: “Never underestimate the American consumer.” That saying appears to fit the outcome of the January Retail Sales data. With the actual readings beating estimates across the board, one must consider that the rise may have to do as much with the demand for products as it does with the prices Americans are paying for the products!

Learn more about forex trading opportunities.

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.cityindex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.

ALL TRADING INVOLVES RISKS. LOSSES CAN EXCEED DEPOSITS.

City Index is a trading name of StoneX Financial Pte. Ltd. (“SFP”) for the offering of dealing services in Contracts for Differences (“CFD”). SFP holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore for Dealing in Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading. SFP is also both Derivatives Trading and Clearing member of the Singapore Exchange (“SGX”). SFP is a wholly-owned subsidiary of StoneX Group Inc.

The information provided herein is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to invest, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

The information does not represent an offer of, or solicitation for, a transaction in any investment product. Any views and opinions expressed may be changed without an update. To understand the risks and costs involved, please visit the section captioned “Important Information” and the “Risk Disclosure Statement”.

The information herein is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation.

StoneX Financial Pte. Ltd. 1 Raffles Place, #18-61, One Raffles Place Tower 2, Singapore 048616. Tel: 6309 1000. Co. Reg. No.: 201130598R.

This advertisement has not been reviewed by the Monetary Authority of Singapore.