The global grocery and general merchandising retailer plans to cut 1,200 jobs at its head office only a week after the chief executive Dave Lewis said that cuts would “help simplify the way it does business.” The cuts were announced after the retailer stated that it would close a call centre in Cardiff last week. U.K.’s largest supermarket chain, Tesco informed its staffs of the cuts on Wednesday morning and is executing a turnaround plan which aims at minimising costs by £1.5bn. Yesterday, shares of the supermarket were higher at 1.4 percent in the late morning trading.
U.S. is set to release its First Quarter Gross Domestic Product (GDP) at 12:30 GMT today and this report needs to be analysed closely as it is the primary indicator of the economy’s health. Member of the U.S. Federal Open Market Committee (FOMC),James Bullard will deliver a speech at 17:00 GMT. Earlier today, the dollar wallowed at one-year lows against the euro and tumbled against the pound sterling in Asian trade.
Japan reported its retail sales yesterday night and data revealed a rise of 2.0 percent in May for the seventh straight month compared to a year ago. Retail sales rose less than expected as sales of durable goods and clothes slowed. Japan will release its Household Spending for May at 23:30 GMT today, while New Zealand’s Building Consents for May is due at 22:45 GMT. The Kiwi was seen trading higher ahead of data releases on Thursday.
In Wednesday’s trading session, the GBP/USD pair recorded several momentary jumps as from 10:00 UTC to reach the 1.29413 level by 14:00 UTC. Today, it initiated the session bullishly at 00:00 UTC at $1.29393 but as from 02:00 UTC, it started dropping on the forex market till the next few hours as the U.S. dollar wallowed against the pound in Asian market. It is recommended to use the Classic Digital Options for this one today.
Since Tuesday’s early trading hours, the dollar index was being dragged downwards by several sets of pullbacks on the market. Yesterday, the index tumbled from the 96.42 level at 13:00 to reach the 96.04 level around 16:00 UTC. It lost 0.1 percent at the 95.843 level around 01:00 UTC today and followed a much volatile trend. However, it may gain some strength during the day, depending on the trend of the dollar.
The S&P 500 index traded remarkably in yesterday’s trading session as it recorded huge sets of momentary jumps on the market. It started picking up strength as from 08:00 UTC when it traded at 2419.4 points and closed this bullish trend by 17:00 UTC at 2441.4 points on Wednesday. Today, the index reached a record high of 2445.9 points around 03:00 UTC since Monday. It may continue this uptrend in the hours to come, keep a close watch on this.
Tesco shares can be affected further after it’s announcement and it is thus advisable to trade on Tesco once it is made available on the trading platform.
Investors are recommended to trade assets such as the EUR/USD, GBP/USD, AUD/USD and Wall Street indices as the S&P 500 are seen moving towards a bullish trend on the market.
Consider trading currency pairs such as the EUR/JPY, USD/JPY, and NZD/USD, NZD/JPY for today.