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
EUR/USD
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
Oil - US Crude
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
Wall Street
Bearish
Gold
Bearish
GBP/USD
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
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: NYM WTI Crude 39.83 (+0.08%), ICE Brent Crude 41.69 (-0.07%), NYM NYH Gasoline 117.81 (+1.19%). [delayed]
  • Today's webinar recording if you missed it live - https://t.co/JyBaVkbzI8
  • US Dollar Price Action Setups: EUR/USD, GBP/USD, AUD/USD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2020/09/23/US-Dollar-Price-Action-Setups-USD-EUR-USD-EURUSD-GBP-USD-GBPUSD-AUD-USD-AUDUSD.html https://t.co/mXFX1rWAr0
  • Canadian #Dollar Outlook: $USDCAD Breakout Levels- Bull’s First Test - https://t.co/sDdpxq3Zxd https://t.co/mFLUeJ8sY2
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.05% Gold: -1.79% Silver: -5.98% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/wrmWnBAFaX
  • TikTok files for a preliminary injunction against Trump ban - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.16%, while traders in NZD/USD are at opposite extremes with 63.82%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BUdnibnuey
  • The DAX 30 is on pace for a noteworthy weekly loss after a key trendline was breached. Get your #DAX market update from @PeterHanksFX here: https://t.co/OoQaBTGv8I https://t.co/1yoq1vYqV5
  • Fed's Quarles: -Decline in inflation expectations bears watching -Will take long time to fully recover from coronavirus shock -Sees strong momentum in household spending -Will be patient reacting to upward inflation deviations $USD $XAU
  • US equities pushing lower in afternoon trade. Downside led by the Nasdaq, followed by the S&P 500 and Dow Jones. $SPX $DJI $NDX $ES_F $YM_F $NQ_F #Stocks #StockMarket https://t.co/TIKHzGxD0y
British Pound Stuck in a Rut as Retail Sales Underwhelm

British Pound Stuck in a Rut as Retail Sales Underwhelm

2017-02-23 12:37:00
Oliver Morrison, Analyst
Share:

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 oliver.morrison@ig.com

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.

DISCLOSURES