GBP/USD rises above 1.2850 ahead of UK Retail Sales figures
GBP/USD continues to strengthen for the second consecutive session, trading around 1.2870 during the Asian hours on Friday. The improved risk sentiment, driven by a stronger-than-expected recovery in US Retail Sales, has eased concerns about a potential US recession and boosted risk-sensitive currencies like the Pound Sterling (GBP).
Additionally, the British Pound gained ground due to positive key economic data released on Friday, including Gross Domestic Product (GDP) data, from the United Kingdom (UK). The UK economy expanded 0.6% quarter-on-quarter in the second quarter, as expected. Meanwhile, the GDP rose 0.9% YoY in Q2 vs. 0.9% expected and 0.3% booked in Q1. Read more…
GBP/USD bulls aim for 1.2900 amid risk appetite recovery
GBP/USD found the gas pedal on Thursday after a steeper-than-expected recovery in US Retail Sales pushed Cable back into the high end. Market sentiment rebounded on the day after fears of a possible US recession were cooled by US data beating expectations, and the Pound Sterling caught additional bullish momentum from UK Gross Domestic Product (GDP) growth meet expectations and UK Manufacturing Production handily exceeding forecasts in July.
Coming up on Friday, UK Retail Sales are expected to rebound from a recent downswing. MoM Retail Sales in July are forecast to rise to 0.5% after the previous month’s -1.2% contraction, with the YoY figure expected to surge to 1.4% from the previous -0.2% contraction. On the US side, the University of Michigan’s Consumer Sentiment Survey Index is expected to show an improvement in consumer economic expectations, with the figure forecast to tick up to 66.9 from an eight-month low of 66.4. Read more…
GBP/USD recovers balance post-US Retail Sales
GBP/USD recovered back into the high side on Thursday after a bullish tilt in UK data prints coupled with better-than-expected US Retail Sales figures helped to improve overall market sentiment and keep the Greenback pinned on the low side.
US Retail Sales growth lurched to an 18-month high of 1.0% MoM in July, well above the forecast 0.3% and entirely engulfing the previous month’s -0.2% contraction. Improving economic health indicators are helping to stave off recent concerns of a potential recession within the US. However, rate markets got cold water thrown on recent bets of a double cut from the Federal Reserve (Fed) in September. Read more…
