News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: France 40: -0.10% Wall Street: -0.14% US 500: -0.15% Germany 30: -0.23% FTSE 100: -0.37% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/UTmuwSgVa6
  • Mayor of Los Angeles says the city is near 'devastating' tipping point following announcement of city wide stay-at-home order $DXY $SPX
  • Mayor of Los Angeles orders a stay-at-home order amid rising Covid cases $DXY $SPX
  • The dispute between the Federal Reserve and the Treasury Department concerned economists and government officials last week. Traders, however, appeared unfazed as U.S. equity markets proceeded to higher ground. Get your market update from @FxWestwater here:https://t.co/DKK7WWHKlu https://t.co/K1f9Y1h4sn
  • China official urges preparation for Covid vaccine production - Xinhua via BBG
  • Over the past seven days, $EUR has been the best performing G10 major vs the #USD with a 1.66% spot return while $GBP has been the worst at -0.11% spot return $EURUSD $GBPUSD $DXY
  • The US Dollar (via the DXY Index) has hit fresh lows amid the latest headlines around US fiscal stimulus talks. Get your market update from @CVecchioFX here:https://t.co/yDXdpZIcxq https://t.co/GlSrdNjEeZ
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Gold: 0.22% Oil - US Crude: 0.14% Silver: -0.21% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/WR0TUUbAnB
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.12% 🇨🇭CHF: 0.09% 🇪🇺EUR: 0.08% 🇨🇦CAD: -0.02% 🇯🇵JPY: -0.03% 🇳🇿NZD: -0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/mgBg1eesms
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 94.68%, while traders in EUR/USD are at opposite extremes with 73.16%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/ZyugXjE2ov
GBP/USD Slumps Under $1.5100 as April Retail Sales Underwhelm

GBP/USD Slumps Under $1.5100 as April Retail Sales Underwhelm

2013-05-22 09:20:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: GBP Retail Sales ex Auto Fuel (APR) > -1.4% versus +0.1% expected, from -0.7% (revised higher from -0.8%) (m/m), +0.2% versus +1.8% expected, from +0.4% (y/y) > Retail Sales w/ Auto Fuel (APR) > -1.3% versus +0.1% expected, from -0.6% (revised higher from -0.7%) (m/m), +0.5% versus +2.0% expected, from -0.5% (y/y) > Bank of England May meeting Minutes show split MPC over more QE > GBPUSD BEARISH

Despite a strong 1Q’13 GDP report, it appears that the British economy is losing steam, in thanks to a slowdown in consumption trends. According to the Office for National Statistics, the slowdown in Retail Sales can be wholly attributed to a slump in food prices in the early-2Q, exacerbated by what’s being described as ‘poor weather.’ Regardless, in light of disinflating price pressures (per the April CPI report), the slowdown in sales can be viewed as a shift towards slower growth once more.

Concurrently, the Bank of England releases the Minutes from its May meeting as well earlier, noting the Monetary Policy Committee’s concern for inflation (per the majority’s perspective, as outgoing Governor Mervyn King was outvoted once more, 6-3). “There was tentative evidence that measures of medium-term inflation expectations were becoming more sensitive to short- term news in inflation...Financial markets were not expecting further asset purchases at this meeting and might, at the margin, reassess the committee’s tolerance of elevated inflation should additional stimulus be injected.” If inflation continues to fall, incoming BoE Governor Mark Carney may be forced to implement additional policy measures, which would be GBP-negative.

[Read: Stay Away from Mark Carney!]

GBPUSD 1-minute Chart: May 22, 2013

GBPUSD_Slumps_Under_1.5100_as_April_Retail_Sales_Underwhelm_body_x0000_i1027.png, GBP/USD Slumps Under $1.5100 as April Retail Sales Underwhelm

Charts Created using Marketscopeprepared by Christopher Vecchio

Following the release, the GBPUSD fell from 1.5135 to as low as 1.5073, as a major function of the UK’s headline GDP reading floundered. At the time this report was written (approximately 30 minutes after the reports), the GBPUSD had regained 1.5095. Volatility is likely to remain elevated over the next several hours thanks to several key Federal Reserve events on the docket.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES