Pound Sterling Price News and Forecast: GBP/USD yawns on mixed Retail Sales
|Daily technical and trading outlook – GBP/USD
GBP/USD - 1.2461.. Although cable swung sideways in tandem with euro on Thur, price caught a bid at 1.2339 in early European trading n rallied abv Wed's 1.2501 high to 1.2524 in NY morning b4 retreating on profit taking.
On the bigger picture, despite cable's brief break of 2016 post-Brexit low of 1.1491 to a near 35-year trough of 1.1412 in mid-Mar 2020 on safe-haven usd's demand following free fall in global stocks, price rallied to 1.3686 on the last trading day of 2020 following a last-minute EU-UK trade deal, then to a near 34-month 1.4241 peak in late Feb suggests a major low is made. Read more...
Pound yawns on mixed Retail Sales
The British pound is drifting on Friday, after showing unusually strong volatility this week. The pound rebounded on Thursday, racking up gains of 1.06% and briefly breaking above the symbolic 1.25 line.
UK retail sales showed a strong gain in April, with a gain of 1.4% MoM. This followed a decline of 1.2% in March. However, on a yearly basis, sales volumes were 4.9% lower, as the broader picture looks grim. The monthly gain for March may have been a blip, as consumers were hit with higher household energy costs as well as an increase in taxes. Add into the mix inflation at 9.0% and possibly heading into double-digits, and it’s difficult to envision retail sales moving higher. Read more...
GBP/USD sticks to modest gains below 1.2500 mark, upside potential seems limited
The GBP/USD pair traded with a mild positive bias through the first half of the European session and was last seen hovering around the 1.2475-1.2480 region, up 0.15% for the day.
Following the previous day's modest pullback from a two-week high, the GBP/USD pair attracted some buying on Friday and was supported by better-than-expected UK macro data. The UK Office for National Statistics reported that Retail Sales unexpectedly rose by 1.4% in April as against consensus estimates pointing to a drop of 0.2%. Read more...
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