Sterling struggles following poor UK retail sales figures | Smart Daily Currency Note
This week (Last week)
GBP/USD – 1.5216 (GBP/USD – 1.5092)
Sterling rose against most of its major trading partners barring the euro yesterday; finding support in the wake of house prices increasing at the fastest annual rate since 2011 and most markedly against the US dollar as weak economic releases from the world’s largest economy have diluted speculation that the Federal Reserve will scale back its asset purchase programme. Bouncing back from disappointing retail sales figures on Wednesday, sterling made advances following a report from mortgage lenders nationwide showed house prices had risen 1.1% from last year. With the housing market slowly gaining momentum and the sporadic recovery in the UK continuing to head in the right direction, sterling has started to gather a little bit of momentum – the question however is whether or not sterling can maintain this strength. With lending data emerging today call in for live markets rates at Smart Currency.
After a strong start to the week which saw the US dollar perform well with strong consumer confidence and house price figures, it fell in many of its most traded pairs through Wednesday and Thursday after the US Department of Labour reported that the number of people registering for unemployment benefit grew last week by 10,000 rather than dropping by 4,000 as forecast. The US Commerce Department meanwhile revised down first quarter GDP figures to 2.4%, down 0.1% from the preliminary reading as slower inventory building activity and cuts in government spending took their toll. With this, anticipation waned for the first time in some weeks that the Federal Reserve may continue its asset purchasing programme for the near future. However strong consumer spending figures, the highest gain since 2010, revealed that rising real estate valuations and a healthy equity market are still driving the recovery forward, with a forecast that is still positive for the world’s largest economy. Inflation and personal spending figures as well as revised consumer sentiment data are released today; call your trader for up-to-the-minute feedback and trading valuations.