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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
Wall Street
More View more
Real Time News
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • RT @FxWestwater: New Zealand Dollar May Fall Further as Stimulus-Driven Yield Climb Continues Link:…
  • Wall Street Futures Update: Dow Jones (+0.43%) S&P 500 (+0.47%) Nasdaq 100 (+0.62%) [delayed] -BBG
  • #ASEAN FX appear in trouble vs #USD in the near-term amid rising Treasury yields (see link) My ASEAN-based USD index confirmed a break under key falling resistance from April Prices face the 200-day SMA, a break higher may open the door to more gains
  • 🇯🇵 GDP Growth Rate QoQ Final (Q4) Actual: 2.8% Expected: 3% Previous: 5.3%
  • 🇯🇵 GDP Growth Annualized Final (Q4) Actual: 11.7% Expected: 12.8% Previous: 22.9%
  • Heads Up:🇨🇳 National People's Congress due at 00:00 GMT (15min)
  • Heads Up:🇯🇵 GDP Growth Rate QoQ Final (Q4) due at 23:50 GMT (15min) Expected: 3% Previous: 5.3%
  • Heads Up:🇯🇵 GDP Growth Annualized Final (Q4) due at 23:50 GMT (15min) Expected: 12.8% Previous: 22.9%
  • It’s important for traders to be familiar with FX spreads as they are the primary cost of trading currencies. Understand a pair's spread here:
British Pound Stuck in a Rut as Retail Sales Underwhelm

British Pound Stuck in a Rut as Retail Sales Underwhelm

Oliver Morrison, Analyst

Talking Points:

- UK retail sales bounce back from poor January but only modestly, says CBI report

- Data contain more evidence Brits are reigning in their spending because of Brexit

- British Pound rangebound against its major peers

See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

UK retail sales recovered modestly in February, after falling in January, according to the latest Confederation of British Industry’s quarterly Distributive Trades Survey.

The balance of retailers reporting a year-on-year increase in retail sales volumes rose to +9% year-on-year in the month, beating estimates of +2%, after falling to a four-month low of -8% in January from a 15-month high of +35% in December and from +26% in November, +21% in October and -8% in September.

The data, however, still point to consumers becoming more cautious in their spending as the slump in the Pound post the Brexit vote hits their purchasing power. Ben Jones, principal economist at the CBI, a UK business organisation, which in total speaks for 190,000 businesses, said: “The rebound in retail sales suggests that some of the recent gloom about a slump in consumer demand at the start of 2017 may be overdone.

“However, retailers remain cautious about their prospects, expecting fairly tepid growth in sales volumes next month against a backdrop of rising inflation that is likely to erode households’ purchasing power through the course of the year.

“As the impact of the weaker pound feeds through supply chains, retailers are trying to absorb some of the increase in their import costs through savings.”

The data are unlikely to alter the Bank of England’s extremely accommodative monetary policy. Speaking at the beginning of the week, the bank’s governor, Mark Carney, repeated his message that the bank will continue “looking through” higher inflation due to Pound weakness and not stronger growth until it sees evidence of growing domestic inflationary pressures.

The British Pound remains range bound against its major peers. GBPUSD is up 0.0029 on the day to trade at 1.2487. GBPJPY has risen 0.06 to 141.20. Sterling had looked like it could make significant capital on the political woes facing the Euro, and yesterday EURGBP dropped to a two-month low. Later yesterday, however, the Euro clawed back some ground on the news that two centrist candidates were joining forces in the French presidential election race, thus reducing the chances of the far-right anti-Euro candidate Marine Le Pen. EURGBP is facing less pressure today, dropping 0.0022 to 0.8458.

EURGBP 15-Minute Chart (Intraday, February 23 2017)

British Pound Stuck in a Rut as Retail Sales Underwhelm

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

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