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.

Free Trading Guides
EUR/USD
Bearish
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
GBP/USD
Mixed
USD/JPY
Bearish
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
Oil - US Crude
Bearish
Bitcoin
Bullish
More View more
Real Time News
  • European Opening Calls From IG: #FTSE 7557 +0.65% #DAX 13497 +0.81% #CAC 6012 +0.68% #MIB 23902 +0.82% #IBEX 9575 +0.59% #STOXX 3761 +0.65%
  • Shanghai has raised health response level to its highest, according to People's daily
  • ICYMI: The incoming Bank of England Governor, Andrew Bailey, stated that he was concerned how ill-prepared the UK was for a market crash https://t.co/RULE0w5old
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/kfIoHUeycD
  • NZD/USD Technical Analysis: NZ Dollar Sellers Challenge Uptrend - https://www.dailyfx.com/forex/technical/home/analysis/nzd-usd/2020/01/24/NZDUSD-Technical-Analysis-NZ-Dollar-Sellers-Challenge-Uptrend.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Spivak&utm_campaign=twr #NZDUSD #technicalanalysis https://t.co/3tZ3xzWu05
  • What's the difference between leading and lagging indicators? Find out from @RichardSnowFX here:https://t.co/vGx8HCagF5 https://t.co/VlXWhsKt7F
  • Have you been catching on your @DailyFX #podcast "Global Markets Decoded"? Catch up on them now, before new episodes release! https://t.co/Twr44cZ1GB https://t.co/Dcr5GWwALW
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.13%, while traders in US 500 are at opposite extremes with 76.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/4CSQjjnnOa
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.01% 🇨🇦CAD: -0.00% 🇦🇺AUD: -0.01% 🇬🇧GBP: -0.04% 🇪🇺EUR: -0.06% 🇨🇭CHF: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/vYOXemz2Vo
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: France 40: 0.91% Germany 30: 0.90% Wall Street: 0.14% US 500: 0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/FwJ0kGFDLx
GBP Regains Strength, Retail Sales Manage to Recover

GBP Regains Strength, Retail Sales Manage to Recover

2019-07-18 09:00:00
Daniela Sabin Hathorn, Junior Analyst
Share:

GBP Talking Points:

  • Sterling (GBP) soared on Thursday morning as a bill was passed on Wednesday to try and prevent a no-deal Brexit
  • Retail sales have managed to grow in June after two months in contraction, but a decline in the second quarter of the year is still expected
  • Forecasts for July indicate that retailers are expecting sales to slow in the next month

GBP managed to regain some of yesterday’s losses, gaining strength across the board at the start of the morning session. The strength in sterling comes after reports that a bill was passed in the House of Lords to prevent Boris Johnson from suspending parliament in the weeks before the October 31 deadline to prevent him from pushing through a no-deal Brexit, which has managed to regain a slight confidence in the economic outlook for the UK. GBPUSD jumped to 1.2471 at the open on Thursday morning before pushing higher as the better than expected retail sales figures were released.

CHART: GBP HIGHER ACROSS THE BOARD (18/07/19)

GBP Regains Strength, Retail Sales Manage to Recover

Despite uncertainty about the future of the economy, retail industry sales in June managed to grow after falling 0.5% in the previous month. May’s decline was partly blamed on the unusually cold weather for the month which added to concern on behalf of the industry due to the continued downtrend. But sales in June managed to grow 1% with the annual figure showing a growth of 3.8% in the twelve months to June, both figures beating expectations, providing a sign of relief for the retail industry. However, weakness in growth indicates that consumer spending is likely to have been softer in the second quarter of the year.

A report published last month by the CBI showed that retail sales had fallen at the fastest pace since 2009 in the twelve months to June with the biggest decline seen in grocers and hardware stores. Online and mail order retailers were the only outliers to see a raise in growth, which is expected to continue in the coming months, albeit at a slower pace than the average. Retail sales balance survey showed that 16 per cent of retailers believe that sales have increased whilst 58 per cent said sales were down, giving a weighted balance of -42%, down from -27% in the previous month. Forecasts for the month of July show that 16 per cent of retailers expect sales volume to increase but 27 per cent expect a decrease, giving a balance of -11%, its lowest level since August 2016.

Credit conditions survey carried out by the Bank of England to be released today will show the lending conditions in the UK for the latest quarter, where a rise in debt may be a potential risk but also a good sign for growth in the economy. If the figure shows weakness in the confidence of the economy, we can expect to see some sell off pressure in sterling as capital flows towards liquidity bearing assets like USD, weighing down on GBP’s current rally.

Recommended Reading

Eurozone Debt Crisis: How to Trade Future Disasters – Martin Essex, MSTA, Analyst and Editor

KEY TRADING RESOURCES:

--- Written by Daniela Sabin Hathorn, Junior Analyst

To contact Daniela, email her at Daniela.Sabin@ig.com

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES

News & Analysis at your fingertips.