What is the Retail Sales Indicator and How It Impacts Forex Trading?

Today we are going to look at one of the most important economic indicators called Retail Sales. The news about this index has a great impact on the Forex market. The Retail Sales index examines the amount of sales from stores, markets and factories in a country. If the country’s factories and stores are selling more goods and the markets and shopping malls have a lot of sales, then the sellers in that country have made a lot of profit and the country’s economy has become strong.

And as a result, when the owners of the factories and shops make a lot of profit, they expand their business and more shops and factories are opened, resulting in the unemployment rate in that country decreasing.

This economic index tells us that the higher the amount of sales in a country, the stronger the currency of that country, this index is one of the most important economic indicators of Forex.
This index examines the amount of sales in specific time periods, as well as the type of buyers and products purchased.

How do I trade according to the Retail Sales Index?

If the published value of this index or indicator was higher than the previous value and the predicted value, it will strengthen your desired currency. On the other hand, if its value is less than the predicted value and the previous value, it will weaken the currency.

For example: The retail sales index is released for the EUR currency, and the value is higher than the previous value and the forecast value. This news makes the Euro currency stronger and in currency pairs where the Euro is the first currency, the price will rise and the trend will be bullish.

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