Intraday Strategies for Beginner Traders on August 29

The euro, pound, and other risk assets managed to hold their ground against the US dollar yesterday, despite few reasons for this.

Yesterday, the revised US GDP growth data for the second quarter was released, showing improvement. The economy grew by 3.3%, compared to the preliminary estimate of 3.0%. Surprisingly, the dollar completely ignored this data, and the euro, pound, and Japanese yen even managed to rise slightly.

Traders are more focused on waiting for further signals from the Federal Reserve regarding future monetary policy. Markets are closely watching for any hints about when the Fed might start cutting interest rates, which would have a significant impact on the dollar's exchange rate. The recent dovish tone in interviews from several Fed officials further convinces the market that such steps may become real in the near future.

Today, economists and traders are eagerly awaiting new data on the German economy, which could provide insight into the health of the eurozone economy. Retail sales figures are significant, as they reflect consumer spending—a key driver of economic growth. A decline in these indicators may signal economic weakening, whereas growth would point to resilience. Unemployment data will also be in focus. An increase in the number of unemployed individuals and a higher unemployment rate may signal labor market problems, which in turn puts pressure on consumer spending. Conversely, a decrease would be seen as positive for the economy.

Of course, the key indicator will be the Consumer Price Index. An acceleration in inflation could prompt the European Central Bank to maintain its wait-and-see approach to interest rates, potentially hindering economic growth.

There are once again no data releases from the UK today, so I expect renewed pressure on the pound in the first half of the day.

If the data matches economists' expectations, it's better to use a Mean Reversion strategy. If the data turns out to be significantly higher or lower than expected, it's best to use a Momentum strategy.