|Day's Range||1.303 - 1.312|
|52 Week Range||1.1959 - 1.3510|
London stocks rose and the pound fell on Friday, after disappointing sales data drove up expectations for an interest-rate cut when the Bank of England’s Monetary Policy Committee meets at the end of the month. The FTSE 100 index (UK:UKX) rose 0.9% to 7,678.24, and was poised to gain 1.2% for the week. “Economists were expecting an increase of 0.5%, so the reading was a big miss on forecasts,” said David Madden, market analyst at CMC Markets, in a note to clients.
The British pound fell Friday after data showed U.K. retail sales falling by 0.6% in December versus the previous month, adding to a picture of a weak economy that may need interest rate cuts to stimulate growth. In the three months to December 2019, sales fell 1% against the prior three months. The pound fell 0.2% to $1.3052, from a level of around $1.31 seen just ahead of the data.
GBP/USD showed a bullish bounce at the 88.6% Fibonacci retracement level and also made a bullish breakout above the resistance trend line
The British pound is steady, but could receive a boost if retail sales delivers a solid gain (release on Friday at 9:30 GMT). The story of the week has been the Chinese yuan, which has climbed to a 7-month high against the U.S. dollar.
The British pound rallied a bit during the trading session on Thursday in order to break above the gap that had formed at the beginning of the week. Now that that gap has been filled, it becomes a question as to whether or not it will hold.
With significant downside risks to the global economy turned aside, and worries over a possible recession diminishing, there is a sprouting belief supported by evidentiary proof in the data that global growth could gain momentum over the coming months.
U.K. retail sales disappointed again in December dropping 0.6%, adding further force to arguments for an interest rate cut from the Bank of England at the end of the month.
The pound has remained steady this week, despite some dismal economic data. GDP declined by 0.3% in November and inflation slowed to 1.3% in December. If the soft economic numbers keep coming, the pound could find itself in 1.29 territory in a hurry.
Investing.com - The U.S. dollar is largely unchanged in European trade early Thursday, as a degree of calm prevails following the signing of the Sino-U.S. trade deal.
The British pound initially fell during the trading session on Wednesday, but then turned around to show signs of support. The 50 day EMA is an area that causes a lot of attention as well.
Invesing.com – The U.S. dollar fell Wednesday on data showing inflation remained muted, while the conclusion of the U.S.-China phase one trade deal had a muted impact on the greenback.
U.K. stocks moved modestly higher on Wednesday, bucking more sluggish activity across Europe as investors focused on U.S.-China trade tensions, and weighed up some British data and Bank of England comments.
GBP/USD attempted a recovery a Tuesday but has fallen under pressure once again after BoE’s Saunders discussed easing policy.
There were very mixed headlines to start the day. US drafting rules to block more sale to Huawei while China vows to punish firms who infringe on trade secrets, according to the New York Times. But I think after two years of trade war noise, hopefully the markets have learned to take all the bluster with a grain if not a barrel of salt.
Investing.com - A tone of caution prevails in the foreign exchange markets Wednesday, ahead of the signing of the much-awaited trade deal between U.S. and China.
The British pound has fallen initially during the trading session on Tuesday but have also turned around to show signs of support again. That being the case, you should pay attention to the 50 day EMA which is looking very likely to offer interest by traders.
Today, we will analyze the technical situation on three currency indexes. Analyzing an index is a great option to check the general sentiment towards one particular currency. We can later use it to trade many other interesting instruments.
The British pound is been under pressure in the early week after a weak GDP reading on Monday, however, the pair has not made a clear break of notable support.