Trading Forex and CFDs is risky
Read HotForex Daily Market Analysis

UK Retail Sales Confirms Cable Confidence

Market Analysis

USDGBP, Daily                 

UK April retail sales exceed expectations, rising 2.3% m/m after a 1.4% n/n contraction in the previous month (revised up from a -1.8% m/m original figure). The median forecast had been for a much more moderate 1.0% m/m increase. The y/y figure rose 4.0%, up from 2.0% y/y in March (also revised higher, from 1.7%). The stellar data was pinned on warmer weather and the disturbance to seasonal adjustments caused by the late timing of the Easter break this year relative to last year. The rolling three-month figure showed sales rising in a more restrained manner, by 0.3%. The strong monthly data was nonetheless a bullish cue in forex markets, prompting a rally in sterling, which is presently showing an average 0.5% advance against the G3 currencies.

USDGBP, as I have suggested a number of times already this week, is in confident mood. The key Golden Cross on Monday (May 15) continues to be confirmed and the spike through my pending order at 1.2984 was filled on the Retail Sales news. Target 1 is a little over the 14 DATR at 1.3080, with target 2 at the seemingly heady 1.3162 and the 38.2 Fibonacci retracement level of the post Brexit cable collapse.

Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.