Pound Bounces Off As U.K. Retail Sales Improve
November 16 2017 - 12:43AM
RTTF2
The pound reclaimed its lost ground against its major
counterparts in early European deals on Thursday, after a data
showed that the nation's retail sales grew more than forecast in
October.
Data from the Office for National Statistics showed that retail
sales increased 0.3 percent in October from September, slightly
faster than the expected 0.2 percent.
Excluding auto fuel, sales volume grew only 0.1 percent.
Economists had forecast sales to remain flat.
On a yearly basis, overall retail sales volume fell 0.3 percent
on month, reversing a revised 1.3 percent rise in September. Sales
were forecast to drop 0.5 percent.
Likewise, excluding auto fuel, retail sales dropped 0.3 percent
in contrast to September's 1.6 percent increase. Economists had
forecast a 0.4 percent decrease.
European shares rose, with banks and automakers leading the
surge, as oil held steady, the dollar rebounded from four-week lows
and investors kept an eye on U.S. tax reform developments.
The currency held steady against its major rivals in the Asian
session, with the exception of the yen.
The pound bounced off to 0.8937 against the euro, from a low of
0.8967 hit at 2:15 am ET. This may be compared to a 2-day high of
0.8934 set at 5:45 pm ET. Continuation of the pound's uptrend may
see it challenging resistance around the 0.88 region.
The pound reversed from an early low of 1.3010 against the
franc, rising to a 4-day high of 1.3062. If the pound extends rise,
1.32 is likely seen as its next resistance level.
The pound edged up to 149.17 against the Japanese yen, off its
early low of 148.52. The pound is seen finding resistance around
the 151.00 mark.
The pound rose back to 1.3183 against the greenback, compared to
previous session's decline to 1.3135. On the upside, 1.33 is likely
seen as its next resistance level.
Looking ahead, U.S. weekly jobless claims for the week ended
November 11, industrial production and export and import prices for
October and NAHB housing market index for November as well as
Canada manufacturing sales for September and ADP employment report
for October are set for release in the New York session.
At 9:00 am ET, the Bank of England officials Mark Carney, Ben
Broadbent, Jon Cunliffe, Jo Place, Dave Ramsden and Sam Woods will
speak at Future Forum in St. George's Hall Liverpool.
At 12:00 pm ET, SNB board member Andrea Maechler delivers a
speech titled "Capital market developments and Swiss monetary
policy" at the SNB's Money Market Event, in Geneva.
The Federal Reserve Governor Lael Brainard speaks about
financial technology at the Third Annual Financial Stability
Conference hosted by the University of Michigan at 3:45 pm ET.
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Aug 2024 to Sep 2024
Sterling vs US Dollar (FX:GBPUSD)
Forex Chart
From Sep 2023 to Sep 2024