Pound Sterling Price News and Forecast: GBP/USD yawns as UK Retail Sales soar
|GBP/USD Forecast: Pound Sterling needs to stabilize above 1.2600 to discourage sellers
GBP/USD benefited from the renewed US Dollar (USD) weakness and snapped a three-day losing streak on Thursday. The pair, however, lost its recovery momentum after testing 1.2600 and edged lower in the early European session on Friday.
The 10-year US Treasury bond yield continued to correct lower following the disappointing Retail Sales data from the US on Thursday and weighed on the USD. Meanwhile, Bank of England's Monetary Policy Committee (MPC) member Megan Greene reiterated on Thursday that the monetary policy will need to remain restrictive for some time, further supporting GBP/USD. Read more...
GBP/USD yawns as UK Retail Sales soar
UK retail sales were more than impressive, surging 3.4% m/m in January. This crushed the market estimate of 1.5% and followed a 3.3% decline in December. The reading was the largest monthly gain since April 2021. The sharp gain was driven by increased sales of food and fuel. On an annualized basis, retail sales rebounded with a 0.7% gain, compared to a 2.4% decline in December and well above the market estimate of -1.4%.
Traders can be forgiven for scratching their head after the latest retail sales report, which points to consumers spending with gusto. Just a day earlier, the markets were digesting the news that the UK economy had entered a recession late in 2024, after recording back-to-back quarters of negative growth. GDP fell 0.3% in the fourth quarter and 0.1% in the third quarter. What gives? Read more...
GBP/USD remains capped below the 1.2600 mark following UK Retail Sales data
The GBP/USD pair remains capped below the 1.2600 psychological mark during the early European session on Friday. The upbeat UK Retail Sales data failed to boost the Pound Sterling (GBP) as investors are still concerned about the UK growth numbers for Q4, which indicated that the UK economy entered a technical recession. GBP/USD currently trades near 1.2590, losing 0.04% on the day.
The latest data released from the UK National Statistics showed that the nation’s Retail Sales rose 3.4% MoM in January from the previous reading of a 3.3% decline, stronger than the estimation of 1.5%. On an annual basis, Retail Sales increased by 0.7% YoY in January from a 2.4% fall in the previous reading. Read more...
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