Advertisement
Advertisement

British Pound Dives Post UK Retail Sales

By:
FX Empire Editorial Board
Updated: Aug 24, 2015, 08:07 UTC

The British pound traded close to 1.5700 against the US dollar on many occasions, and failed to move above it. There was a major risk that the GBPUSD pair

uk retail sales preview

The British pound traded close to 1.5700 against the US dollar on many occasions, and failed to move above it. There was a major risk that the GBPUSD pair might crash down due to the failed attempts to clear the stated level. Today, there was a major release, as the UK retail sales data was published. It missed the market’s expectation, which ignited a nasty downside reaction. Almost all British Pound pairs crashed and traded lower after the release. There is a chance that the GBPUSD pair might continue to weaken moving ahead.

UK Retail Sales

Earlier during the London session, there was an important economic release scheduled in the UK. The Retail Sales, which calculates the total receipts of retail stores was released by the National Statistics. The market was excepting a gain of 0.4% in the retail sales in July 2015, compared to the preceding month. However, the outcome was lower compared with the forecast, as it increased by 0.1% in July 2015.

Looking at the year-over-year change, then the UK Retail Sales climbed by 4.2% in July 2015, compared with July 2014. This was also on the lower side, as the market was expecting an increase of 4.4%. The UK Core Retail Sales outcome was in line with the forecast. The market was expecting a rise of 0.4% in July 2015, compared to the preceding month, and the result matched the forecast. In terms of the yearly change, the UK Core Retail Sales increased 4.3% in July 2015, compared with July 2014, which was once again in line with the forecast.

British Pound Dives Post UK Retail Sales
British Pound Dives Post UK Retail Sales

The report also stated that “Compared with June 2015, the quantity bought in the retail industry is estimated to have increased by 0.1%. Increases were reported by department stores, other stores, household goods stores and non-store retailing offset by falls in predominantly food stores, textile, clothing and footwear stores and petrol stations”

Technically, the GBPUSD pair is under a lot of bearish pressure, and as long as the pair is below the 1.5700 resistance area it remains at a risk of more declines. However, at the same time we cannot deny the fact that there is a major support area around 1.5600 where buyers might defend the downside in the near term.

About the Author

FX Empire editorial team consists of professional analysts with a combined experience of over 45 years in the financial markets, spanning various fields including the equity, forex, commodities, futures and cryptocurrencies markets.

Did you find this article useful?

Advertisement