|Day's Range||1.299 - 1.308|
|52 Week Range||1.1959 - 1.3510|
IMF attributes ‘the lion’s share’ of downward revision to ‘more subdued growth forecast’ for India. Asia’s third-largest economy, is expected to grow by 5.8% in 2020, a 1.2 percentage point markdown from the organization’s October forecast.
Job numbers out of the UK were generally positive on Tuesday, triggering a rally in the pound to dollar exchange rate.
U.K. employment grew by 208,000 in the three months to November as the unemployment rate stayed at 3.8%, the Office for National Statistics reported Tuesday. Average weekly earnings stayed at 3.2%, and the claimant count for December edged up to 3.5% from 3.4%. The British pound rose after the publication of the data, with sterling rising to $1.3028 versus Monday's close of $1.3009.
The pound is subdued on Tuesday, but that could change later in the day, as investors brace for soft employment numbers out of the U.K. (releases at 9:30 GMT).
More stats due out of the UK could test the Pound further this afternoon. Earlier in the day, the BoJ held rates steady.
Investing.com - The Japanese yen is in demand Tuesday as a safe haven currency with the outbreak of the pneumonia-like virus in China sparking a bout of risk aversion.
The British pound initially fell during the trading session on Monday but did recover a bit as we are starting to test the 1.30 level. The uptrend line is coming into play as well, although we are just short of the 50 day EMA.
GBP/USD attempted to recover higher last week but sellers stepped in after a weak UK retail sales report that encouraged rate cut speculation.
British numbers were dismal last week. On Friday, retail sales declined by 0.6%. The pound is showing signs of weakness, as it has slipped below the symbolic 1.30 level. Is cable headed for further losses?
With only a couple of data releases amidst the Fed’s communication blackout period, this holiday-shortened week looks to be relatively lackluster from the US economics perspective.
Investing.com - The U.S. dollar was largely flat in European trading Monday, with the U.S. holiday providing little incentive for traders to take risks. That said, the greenback still looks strong against its main competitors.
The PBoC left LPRs steady this morning, with some time likely needed to asses the impact of recent cuts and the phase 1 agreement.
The British pound went back and forth during the course of the week, as we get a lot of push back and forth from both buyers and sellers. The Friday session had a very poor retail sales figure release, and that of course weighed upon the market.
The British pound pulled back after initially trying to rally during Friday as the retail sales numbers were miserable in the United Kingdom. That being said, we are still very much in an uptrend and it will be interesting to see whether or not we can continue.
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.
Retails sales in the UK were much worse than analysts expected, fueling rate cut expectations and putting Sterling under pressure.
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.