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FOREX: GBP Trades Well on Solid Retail Sales

FOREX
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  • GBP trades well on the back of a better-than-expected set of retail sales numbers this morning, with both metrics topping expectations on both an including- and excluding-auto fuels basis. EUR/GBP extended losses based on yesterday's ECB decision, touching new pullback lows of 0.8295 as a result. This marks a bearish break for the cross, opening support at 0.8250 and 0.8203 beyond.
  • The UK retail sales data and persistent JPY underperformance has tipped GBP/JPY to briefly show above the late September highs and touch the best levels since end-July this morning. Further strength here would mark a bullish break and a range breakout for the cross - particularly notable given the more dovish backdrop for BoE OIS pricing since the inflation print this week.
  • The USD is somewhat softer, helping the USD Index fade off yesterday's cycle highs. Nonetheless, markets remain in close proximity to key resistance at 103.874 - clearance of which would bring the strongest sollar since early August.
  • More stable WTI and Brent crude oil markets are lending support to oil-tied currencies - helping NOK modestly outperform into the NY crossover.
  • US housing starts and building permits numbers round off the data week, but more attention will likely be paid to commentary from Fed's Bostic, Kashkari and Waller - although none of their appearances appear to be directly addressing the US economy or monetary policy.
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  • GBP trades well on the back of a better-than-expected set of retail sales numbers this morning, with both metrics topping expectations on both an including- and excluding-auto fuels basis. EUR/GBP extended losses based on yesterday's ECB decision, touching new pullback lows of 0.8295 as a result. This marks a bearish break for the cross, opening support at 0.8250 and 0.8203 beyond.
  • The UK retail sales data and persistent JPY underperformance has tipped GBP/JPY to briefly show above the late September highs and touch the best levels since end-July this morning. Further strength here would mark a bullish break and a range breakout for the cross - particularly notable given the more dovish backdrop for BoE OIS pricing since the inflation print this week.
  • The USD is somewhat softer, helping the USD Index fade off yesterday's cycle highs. Nonetheless, markets remain in close proximity to key resistance at 103.874 - clearance of which would bring the strongest sollar since early August.
  • More stable WTI and Brent crude oil markets are lending support to oil-tied currencies - helping NOK modestly outperform into the NY crossover.
  • US housing starts and building permits numbers round off the data week, but more attention will likely be paid to commentary from Fed's Bostic, Kashkari and Waller - although none of their appearances appear to be directly addressing the US economy or monetary policy.