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FOREX: GBPUSD Rally Contained as BRC Shop Prices Slow

FOREX
  • SEK, NZD modestly outperform, while USD, GBP and JPY are among the poorest performing currencies.  
  • The UK BRC Shop Price Index came in lower than expected, at 0.6% vs. Exp. 1.0% and the lowest since November 2021. The data, while stopping well short of arguing for a June rate cut, may be helping contain the rally in GBP/USD posted off last week's low, with the 1.28 handle.
  • Nonetheless, the GBPUSD trend condition remains bullish and the pair is trading higher this week. An important retracement point at 1.2754 has been cleared, 76.4% of the Mar 8 - Apr 22 bear leg. This reinforces current bullish conditions and paves the way for a climb towards 1.2803 next.
  • USD/CNH traded firmer again in early London hours, extending recent outperformance and putting the pair to new monthly highs at 7.2642. Today's price action narrow the gap with next major resistance into 7.2739.
  • SEK extends recent outperformance to press EUR/SEK below the 200-dma of 11.4988 - a close below which would be the first since early April. 
  • Focus for the duration of the Tuesday session turns to house price index data and the May consumer confidence release from the US. Central bank speak includes ECB's Centeno and Knot, while Fed's Kashkari, Cook and Daly also make appearances. 
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