Sterling edges higher as retail sales.........>

FOREX: Sterling edges higher as retail sales support

-Heavy discounting, particularly in the clothing and footwear sector, helped

prop up January UK retail sales, which rose 1.2% against expectations of a mere

0.2% rise, with consumer spending bouncing back after a dip in December. GBP/USD

crept back above the $1.28 mark on the release, with bulls now targeting the

overnight highs and yesterday's highs at $1.2878, with the 100-dma also sitting

at $1.2876.

-Markets appear wary to sell the USD, however, with today marking a Fed SOMA

day, with USD liquidity expected to decline by $23.3bln, the fourth largest

drain in 2019.

-JPY recovers some of the weeks losses following a pull lower in USD/JPY

Thursday, with USD/JPY trading just below the Y110.50 level, which may take

focus heading into the NY crossover with US equity futures indicating a lower

open.

-US Empire Manufacturing, mortgage delinquencies and Uni of Michigan sentiment

data are the calendar highlights. Fed's Bostic is due to speak.