Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

British pound managed to preserve gained positions against the US dollar, after pulling back from session lows earlier on Thursday, following a report to show UK retail sales increased for a second month in a row during June.

GBP/USD recorded a session low at 1.5156 at 7:10 GMT, while at 12:00 GMT the pair was trading at 1.5222, up by 0.05% for the day. Support was expected at July 17th low, 1.5077, while resistance was to be encountered at July 17th high, 1.5266.

Earlier on Thursday the Office for National Statistics reported that retail sales in the United Kingdom increased for a second month in a row in June and eased the aroused concerns over economic outlook in the country. Data showed that the total sales rose by 0.2% during June, lower compared to Mays rate of increase, 2.1%, slightly mismatching preliminary estimates of a 0.3% rise. In annual terms, retail sales climbed 2.2% in June, as in May the indicator added 2.1%, according to revised data. In addition, retail sales, excluding volatile components such as fuel costs, rose by 0.2% in June in line with projections, after an increase by 2.1% a month ago. Annually, retail sales ex fuel indicator in the United Kingdom advanced 2.1% in June, beating expectations of a 1.6% increase.

Also on Wednesday, it became clear that all 9 members of Bank of England’s Monetary Policy Committee voted unanimously in favor of preserving the current size of monetary stimulus, according to the minutes from the central bank’s meeting in July. However, two policymakers, who had previously voted in favor of more stimulus, stated that it remained “warranted”.

Meanwhile, Federal Reserve Chairman Ben Bernanke, in his congressional testimony yesterday, said that the scale of monetary stimulus was not on a “preset course” and depended on that how economy performed. Thus, if economic growth strengthened, the easing program could be tapered at a faster pace, while in case of the opposite situation, deteriorating economic results, the scale of asset purchases could be even increased. The Chairman also mentioned that, given the low inflation rate, the central bank was ready to act if necessary, in order to maintain price stability and keep inflation close to the targeted annual rate of 2%.

Elsewhere, the sterling advanced against the euro, as EUR/GBP cross dropped by 0.23% to 0.8609. GBP/JPY pair, on the other hand, climbed 0.57% to reach 152.40.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: AUD/USD daily trading outlookForex Market: AUD/USD daily trading outlook Yesterday’s trade saw AUD/USD within the range of 0.7034-0.7127. The pair closed at 0.7103, rising 0.46% on a daily basis. It has been the 13th gain in the past 27 trading days and also the steepest one since February 4th, when the pair added […]
  • Forex Market: USD/CAD trading outlook for October 4th 2016Forex Market: USD/CAD trading outlook for October 4th 2016 Yesterday’s trade (in GMT terms) saw USD/CAD within the range of 1.3068-1.3145. The pair closed at 1.3120, inching down 0.06% compared to Fridays close. It has been the 169th drop in the past 351 trading days and also a second consecutive […]
  • Forex Market: EUR/PLN daily trading forecastForex Market: EUR/PLN daily trading forecast Friday’s trade saw EUR/PLN within the range of 4.1455-4.1963. The pair closed at 4.1920, gaining 0.45% on a daily basis.At 6:48 GMT today EUR/PLN was down 0.09% for the day to trade at 4.1871. The pair broke the first key daily support and […]
  • Forex Market: GBP/USD daily trading outlookForex Market: GBP/USD daily trading outlook Yesterday’s trade saw GBP/USD within the range of 1.4219-1.4503. The pair closed at 1.4474, surging 1.50% on a daily basis. It has been the 25th gain in the past 54 trading days, a second consecutive one and also the sharpest one since October […]
  • Bowman buys New Mexico-based High Mesa Consulting GroupBowman buys New Mexico-based High Mesa Consulting Group Bowman Consulting Group Ltd said on Wednesday that it had acquired Albuquerque, New Mexico-based High Mesa Consulting Group.Established in 1977, High Mesa provides land and drone based surveying, mapping and geospatial services, […]
  • Forex Market: USD/CAD daily trading outlookForex Market: USD/CAD daily trading outlook Friday’s trade saw USD/CAD within the range of 1.3851-1.4001. The pair closed at 1.3955, rising 0.13% on a daily basis, while marking its third consecutive trading day of gains. The daily high has been the highest level since May 18th 2004, […]