GBP/USD: Three reasons for the downside bias
|There are three major reasons to be going short GBP/USD ahead of a long weekend, Yohay Elam, an analyst at FXStreet, reports. UK Retail Sales missed estimates.
Key quotes
“Retail Sales plunged by 18.1% in April, worse than 16% expected and on top of minor revision. The downbeat data joins a surge of 856,500 in the Claimant Count Change – jobless claims – and a plunge in inflation to 0.8% yearly.”
“China aims to tighten its hold on Hong Kong, legislating a security law that bypasses the city-state's elected officials. The move is angering Washington and is set to trigger protests in one of Asia's most significant financial hubs. The safe-haven US dollar is on the rise in response to the souring market mood.”
“Andrew Bailey, Governor of the BoE, opened the door to setting sub-zero borrowing costs when he spoke to lawmakers earlier this week. His views contrast those of the Fed. That divergence on interest rates is weighing on GBP/USD.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.