Sterling struggles following poor UK retail sales figures | Smart Daily Currency Note
GBP/USD – 1.5142
Sterling had mixed performance in currency market yesterday; weakening against European currencies and the Japanese yen but gained ground against the US dollar. The UK currency rose by around a cent against its stateside counterpart despite a release from the Confederation of British Industry detailing that retail sales had fallen at their fastest rate in 13 months in May. The UK economy continues to struggle with realised retail sales dropping markedly from -1 to -11 points against an expected gain of 4 points. Consumers seem to still be wary of using up expendable income and without public confidence and spending increasing the economy will find it difficult to recover. Call in today to monitor sterling’s progress and price levels as markets anticipate the Bank of England’s policy meeting next week.
The US dollar relinquished much of the ground it had made in the wake of Tuesday’s strong Consumer Confidence news as it fell against most major counterparts throughout yesterday’s trading. The US currency has risen 4% against the Japanese yen this month, and yesterday investors felt prompted to cash in on their profits; selling dollar for yen as a safe haven from weakness in equity markets and pressuring dollar value into a downward trajectory against most major currencies. The discussion over how soon the Federal Reserve will taper back their asset purchase programme however will be the key driver for dollar prices this week. Unemployment Claims reports from the US will be important tomorrow with its potential influence over monetary policy, along with preliminary growth figures for the US economy and Pending Home Sales data. With today carrying significant weight for economic news emanating from the US, call immediately for your trader’s feedback on how the markets could react.