GBP/USD Holds Above 1.7000 Despite Miss From Retail Sales Data
- UK Retail Sales Incl. Auto Posts Weaker-Than-Anticipated
- YoY Act: 3.9% Vs 4.3% Est., MoM Act: -0.5%, -0.5% Est
- GBP/USD Suffers Knee-Jerk Dip Post The Data Release
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UK Retail Sales figures slowed year-on-year for the month of May compared to April, coming in at 3.9 percent versus 6.5 percent for the prior month. The data missed economists’ forecasts of 4.3 percent. The gauge of consumer spending fell for the first time in four months as retail sales including auto for month-on-month declined 0.5 percent from April, which was in line with analysts’ expectations.
GBP/USDsuffered a dip immediately following the release, yet recovered ground shortly afterwards. The currency pair continued to trade above the 1.7000 mark after the data release. Broad-based US Dollar weakness on the back of the June FOMC Meeting may help explain the Pound’s appreciation against greenback preceding the retail sales report.
From a technical perspective, GBP/USD shows near term support at 1.6960 (50% Fib exp.) and resistance at 1.7023 (61.8% Fib exp.).
GBP/USD 5 Minute Chart
Chart Created Using FXCM Marketscope 2.0
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Edward Hyon, DailyFX Research Team
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