Sterling gives up Wednesday's gains on weak retail sales
24/Jul/2015 • Currency Updates•
Sterling struggled yesterday after the retail sales report revealed less buoyant consumption than expected. Retail sales grew by 4% on the year to June, rather than the 4.9% consensus had been expecting.
Friday looks set to be a relatively quiet end to the week in the UK economy. Attention among traders in Britain may well turn to next week’s preliminary growth estimate for the second quarter.
In the absence of relevant macroeconomic news, the Euro continued its Wednesday bounce against the Dollar, at one point getting close to the 1.10 psychological level. The Greek parliament approved further reforms demanded by the creditors, but attention is now shifting over to macroeconomic news from the rest of the Eurozone.
The Key PMI business sentiment numbers will be published today and we expect that this release will drive the performance of the common currency.
More reassuring news from the US economy yesterday. Weekly jobless claims, the best quality high frequency indicator of the state of the labor market, dropped to a new cycle low of just 255,000, firming up expectations for further drops in the unemployment rate and a September hike. The US Dollar however had a mixed performance, ending the day more or less unchanged against a basket of peer currencies
Today, the US Census Bureau will be releasing more housing data for the US economy. This will include the latest new home sales for June at 3pm London time. Some attention among traders will already turn to next week’s interest rate decision and accompanied monetary policy statement from the Federal Reserve.