Skip to Content
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. See our updated Privacy Policy here.

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
More View More
British Pound Unmoved on Best BRC Retail Sales Data in 6 Months

British Pound Unmoved on Best BRC Retail Sales Data in 6 Months

Daniel Dubrovsky, Contributor

Talking Points

  • The British Pound was little changed against its major peers
  • BRC retail sales gained 1.1% (YoY) in July versus -0.7% seen
  • SSI shows that 66 percent of GBP/USD traders are net long

Keep an eye on short-term trends for British Pound Crosses using the Grid Sight Index (GSI) here.

The British Pound showed a reserved response against its major counterparts after British Retail Consortium Sales crossed the wires. The data was released less than one week after a highly anticipated Bank of England rate decision. In this monetary policy announcement, the central bank appears to have downplayed the threat of a near term recession due to their newly enacted accommodative measures.

In July, BRC sales increased 1.1 percent (YoY) versus -0.7 percent expected and -0.5 percent in June. Meanwhile, total sales improved 1.9 percent (YoY) from 0.2% in June. Both of the consumer spending measurements marked their largest gains since January 2016, a six month high.

Perhaps the better than expected data releasing against the backdrop of a dovish central bank does not have much scope to impact policy easing bets. It could be possible to get a stronger lead from next week’s higher profile releases such as UK’s consumer price inflation report. In addition, a singular piece of economic data does not necessarily imply that a trend has reversed.

Meanwhile, the DailyFX Speculative Sentiment Index (SSI) is showing a reading that roughly 66 percent of open positions in GBP/USD are long. The SSI is a contrarian indicator at extreme levels, implying further GBP/USDweakness ahead.

Want to learn more about the DailyFX SSI indicator? Click here to watch a tutorial.

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

DISCLOSURES