GBP/USD halts its three-day losing streak, trading around 1.3330 during the early European hours on Friday. The pair holds ground following the release of the United Kingdom’s (UK) Retail Sales figures.
Rabobank’s Senior FX Strategist Jane Foley notes that Bank of Japan policy expectations have changed little versus other G10 central banks, with markets already pricing a gradual tightening path.
The United Kingdom (UK) Retail Sales data, a key consumer spending measure, declines by 0.4% month-over-month (MoM) in February, lower than 0.8% estimates, after rising 2% in January, revised higher from 1.8%, according to the latest data published by the Office for National Statistics (ONS) on Frid
United Kingdom Retail Sales ex-Fuel (MoM) above expectations (-0.8%) in February: Actual (-0.4%)
United Kingdom Retail Sales (MoM) above expectations (-0.8%) in February: Actual (-0.4%)
United Kingdom Retail Sales (YoY) came in at 2.5%, above forecasts (2.1%) in February
United Kingdom Retail Sales ex-Fuel (YoY) down to 3.4% in February from previous 5.5%
The Bank of Japan (BoJ) releases its review report on developments in the natural rate of interest and the assessment of the degree of monetary accommodation during the European trading session on Friday.
UOB analysts report GBP/USD easing to around 1.3340, with the intraday bias still lower but momentum not strong enough for a deeper slide. They see declines likely limited to a test of 1.3305, with resistance at 1.3355/1.3375.
Silver (XAG/USD) is up over 2.5% to near $70.00 during the early European trading session on Friday. The white metal gains sharply, but is still inside Thursday’s trading range, indicating that the broader trend is sideways.
Asian equities trade sideways as uncertainty over the United States (US)–Iran peace talks limits risk appetite. At the time of writing, Japan’s Nikkei 225 is 0.03% higher to near 53,623, while Hong Kong’s Hang Seng Index is up 0.88 to 25,074, and the SSE Composite Index gains 0.75 to 3,920.
Commerzbank’s Michael Pfister notes that EUR/USD has rebounded on hopes for a Middle East ceasefire, but he doubts the war will end quickly and expects the pair to trade below pre-war levels for now.
