The start of the American session will be positive - Weak JPY, Euro and Pound, strong USD

After the much better and anticipated data from the retail sales, indices will likely open higher. The futures indicate higher open. The worries around the situation with N. Korea lessened and this is positive for the Stock market. Investors will likely turn their attention again towards riskier instrument for trade and investment. The retail sales were 0.6% vs. 0.4% and this supported the USD. There is the possibility that the stronger USD will have a negative impact on stocks, but this will be short lived. We expect higher stocks in the banking sector and technology stocks.

USD/JPY jumped to 110.70, EUR/USD fell to 1.16900. The price of Oil trades lower down to $47.11, even before the US session open and it will have a partly negative effect on the stocks. Gold and Silver prices fell due to the strong dollar at $1,268 and $16.700 respectively. The GBP fell after the inflation data was lower than anticipated at 2.6, rather than 2.7%, this prompted adjustments on the growth of the economy from 3% to 1.5 for this year. This will have a longer negative sentiment against the currency. After a correction of the GBP/USD, we will look for a short positions. It is possible to see lower prices of the commodities as a whole, if the stronger USD remains.

Trader - S. Fuchedzhiev

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