Never miss a story from Katie Pilbeam

Subscribe to recieve updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from Daily FX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Katie Pilbeam

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

The European Central Bank has left its interest rates on hold and maintained its current pace of bond purchases. ECB President Mario Draghi was rather vague in his rhetoric – with no "specific" developments but that there is still much "uncertainty" about the eurozone's future. The current programme will remain in place “until the end of December 2017, or beyond”, and until inflation is on a clear upward path.

During the press conference Mr. Draghi said Inflation is not where we want it to be, nor where it should be, which is why a substantial degree of accommodative monetary policy is still needed.

The euro which has risen sharply over the past few weeks on expectations that the central bank may indicate a preference to tighten monetary policy, came under slight selling pressure after the EBC announcement, trading at EURGBP 0.89050 after trading at an 8-month high of 0.89498 on July 12.

UK retail sales rose by 0.6 per cent in June, beating economist forecasts, following a fall of 1.2 per cent in May. Average store prices increased by 2.7 per cent on the year after a rise of 3.2 per cent in May, which the Office of National Statistics put down to declining fuel prices.

Sterling jumped back over $1.30 when the retail sales figures hit the wires, but soon dropped half a cent to trade around $1.2960. A close here on the daily chart would likely spark further declines. Further losses would target the $1.2905 area, and then towards $1.28. Cable would need a daily close back above $1.3048 to reverse the bearish outlook.

If you're interested in a strategy session, check out the DailyFX Webinar Page.

--- Written by Katie Pilbeam, DailyFX