DailyFX European Market Wrap: GBP/USD Trades Through $1.30, FTSE Slips
The European markets are lower today due to concern over US President Trump’s conflict with the FBI. The FTSE is being pushed down by a stronger pound following the stronger UK retail sales report.
UK retail sales have surged and this is despite the pay squeeze we mentioned on Wednesday. The expected slowdown in consumer spending hasn’t transpired and as a result retail sales rose 2.3%.
Sterling gained after this report – which was the best reading since the start of 2016. It broke through $1.30 for the first time since September 2016 this morning. The 1.30 round number has proved to be a strong resistance level for sterling against the dollar so traders will be waiting to see whether the pound continues to hold above it or drops back below.
And talking of shopping – parcel delivery service Royal Mail jumped 25% thanks to parcel deliveries rising 3% as shoppers use their service when shopping online. Pre-tax profits rose to £335m in the year to 26 March from £267m, while revenues grew 1% to £9.8bn.
Despite Sterling’s demise since the Brexit vote British fashion retailer Burberry reported a 5% dip in annual pre-tax from £395m from £416m over the previous 12 months.
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--- Written by Katie Pilbeam, DailyFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.