Sterling trims the week's losses ahead of.....>

FOREX: Sterling trims the week's losses ahead of the close

-While GBP remains weaker since the Monday open, GBP outperformed Friday, rising

against all others in G10, with a set of better-than-expected retail sales

figures for January helping underpin. January retail sales surged 1.2% vs. Exp.

0.2%, helping nudge GBP/USD back above $1.2850 ahead of the NY close.

-The greenback traded mixed, but the USD index managed to touch the best levels

of the year following stronger Empire Manufacturing figures (a Fed SOMA day also

helped prop up prices), but much of the gains were sold off on a dismal

industrial production print (-0.6% vs. Exp. +0.1%), which countered somewhat

positive US-China trade headlines.

-Safe haven FX underperformed from the off, with markets buying yesterday's dip

in USD/JPY and lifting the pair north of Y110.50 as the 50-dma at Y110.18

provided firm support. Equities traded well on both sides of the pond, which

further underpinned sentiment.

-The week should start quietly with a US bank holiday followed by UK employment,

German ZEW, FOMC minutes and prelim Eurozone PMI data.