The pound lost some 200 pips on Thursday and the GBPUSD pair was trading down 1.50% during the London session as traders aggressively sold sterling after the UK Brexit minister Dominic Raab's resignation. The Cable decline back below the 1.30 level and was trading at 1.2870 during afternoon.
Earlier in the day, the UK retail sales slumped again and the year-on-year gauge slowed to 2.2% from 3.3% in September. Moreover, the core indicator also decelerated notably from 3.6% to 2.7%. Weaker data also undermined the pound.
On the other hand, the US retail sales improved notably on the monthly basis and posted a 0.8% growth, up from -0.1% previously, while the ex autos gauge surged to 0.7% from -0.1%. The greenback strengthened slightly after these numbers.
Finally, the Fed's chair Jerome Powell is due to speak about Hurricane Harvey recovery efforts at an event hosted by the Federal Reserve Bank of Dallas in Houston.
Cable is quickly dropping toward the key support of previous lows near 1.27 and if taken out, the long-term downtrend would be confirmed. On the upside, the first intraday resistance is seen at 1.2920 and while it trades below, the outlook seems bearish.
Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.
© 2000-2022. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.