Forex: GBP/USD drops to session lows around 1.5470/75

The sterling is accelerating the downside in the wake of softer-than-expected retail sales data during January. In fact, sales contracted 0.6% on a monthly and yearly basis against a forecasted expansion of 0.4% and 0.8%, respectively. Stripping the fuel component, sales were also grim, contracting 0.5% MoM and rising 0.2% over the last twelve months, vs. +0.4% and +1.4% estimated, respectively.

As of writing, GBO/USD is retreating 0.07% at 1.5483 with the immediate support at 1.5458 (low Jul.26) ahead of 1.5414 (low Jul.13) and then 1.5393 (low Jul.12).
On the upside, a surpass of 1.5544 (high Feb.14) would lead to 1.5647 (MA10d) and 1.5690 (high Feb.13).

Feb 15, 2013

Forex: EUR/GBP rallies on very disappointing UK retail sales

Analysts failed to forecast correctly what UK retail sales would be like in January. Markets were taken by surprise as actual data shows contracting figures at -0.6%, instead of +0.8% (YoY), and -0.5% instead of +0.4% (MoM), as well as -0.5% instead of +0.4% (ex- fuel MoM).

UK: Annual Retail Sales fall by 0.6% in January

On an annual basis UK Retail Sales dropped 0.6% in January, compared with the 0.1% rise in December, National Statistics reported on Friday. Analysts expected an increase of 0.8%. Month-over-month UK Retail Sales slid 0.6%, following the 0.3% drop and against expectations of 0.4% growth.