- GBP/USD grinds near intraday high as UK Retail Sales MoM improves in April.
- US Dollar’s pullback from key resistance line adds strength to Cable pair’s run-up.
- Multiple US statistics scheduled to entertain intraday traders of the Pound Sterling.
- US debt ceiling updates, central bank commentary appears crucial for fresh impulse.
GBP/USD retreats after refreshing intraday top, around 1.2335 by the press time, as it cheers firmer UK Retail Sales growth, as well as the US Dollar’s retreat, heading into Friday’s London open. In doing so, the Pound Sterling recovers from a seven-week low while printing the first daily loss in five.
UK Retail Sales improves on MoM prints lesser-than-forecast number on YoY. That said, the Core Retail Sales, namely the Retail Sales ex Fuel, rose on both monthly and yearly basis.
Also read: UK Retail Sales rise 0.5% MoM in April vs. 0.3% expected
With the recently firmer British data, the Bank of England (BoE) policymaker Jonathan Haskel’s hawkish comments gain acceptance as he said on Thursday, “Further increases in bank rates cannot be ruled out.”
Apart from the mostly upbeat UK data, the US Dollar Index (DXY) pullback from a 2.5-month high, to 104.17 at the latest, also allow the Cable pair to remain firmer. The greenback’s retreat could be linked to the mixed feelings about the US policymakers’ ability to avoid the “catastrophic’ default. It should be noted that the latest headlines suggest that the US President Joe Biden and House Speaker Kevin McCarthy appear near two-year deal on us debt ceiling as default looms.
While portraying the mood, US stock futures print mild losses while the US Dollar Index retreat from a two-month high and the yields dribble near the highest levels since March. All of it portrays mixed sentiment and lure the GBP/USD buyers.
Looking forward, US Durable Goods Orders for April and the Core Personal Consumption Expenditure (PCE) Price Index for the said month, known as the Fed’s preferred inflation gauge, will be crucial to watch. Above all, US debt ceiling negotiations should be traced for clear directions.
Technical analysis
Despite the latest corrective bounce, the GBP/USD pair remains below a two-week-old resistance line, around 1.2370 by the press time, keeps bears hopeful to revisit the 100-DMA support of around 1.2285.
Read the full article here
