GBP/USD – Pound Losing Grip on 1.30

GBP/USD has started the week with slight losses. Currently, the pair is trading at 1.2979, down 0.21% on the day. There was positive news out of the housing sector, as the Rightmove House Price Index rebounded with a gain of 2.3% in January, after posting five declines in the past six months.

Investors Eye Job Numbers

The week ended on a sour note, as British retail sales declined by 0.6% for a second straight month. Analysts had expected a gain of 0.5 percent. Investors will now shift their focus to the labor market, with key releases on Tuesday. Wage growth has slipped in the second half of 2019 and fell to 3.2% in October. This was sharply lower than the 3.6% gain in September. The downward trend is expected to continue in November, with an estimate of 3.1%. Unemployment rolls fell to 28.8 thousand in November, but this was higher than the forecast of 21.2 thousand. Analysts are braced for a weak release in December, with an estimate of 33.4 thousand.

Technical Analysis

The pair has broken below the 1.30 line, which has psychological significance. The 50-EMA line remains at 1.3000. Below, 1.2950 remains vulnerable in support. On the upside, 1.3050 has some breathing room as GBP/USD continues to lose ground.

Pacific Currencies – Daily Summary

USD/CNY – Yuan Climbs to 8-Month High

The Chinese yuan continues to gain ground and was up close to 1 percent last week. Currently, USD/CNY is trading at 6.8550, down 0.06% on the day. In the Asian session, the pair touched a low of 6.8409, its lowest level since May. There are no major Chinese indicators on the schedule.

AUD/USD

 AUD/USD lost ground last week for a third consecutive week. The pair is currently trading at 0.6880, up 0.10% on the day. In economic news, Australia releases Westpac Consumer Sentiment on Tuesday. Consumer confidence remains weak – the indicator fell by 1.9% in December, its third decline in four months.

NZD/USD

NZD/USD has slipped 1.6% in January and remains under pressure. Currently, the pair is trading at 0.6617, up 0.07% on the day. There are no New Zealand events on the schedule.