Retail Sales plunged 1.5% in December
This compares with November’s unexpectedly large 1.1% month-on-month increase and was well below the -0.8% consensus expectation.
Sterling fell sharply on the news.
Earlier this morning the British pound came within one cent of 1.4000 to trade at its highest level since the UK’s vote to leave the EU in June 2016. Sterling has also made gains versus the euro. However, the upside has been limited given the single currency’s recent strength. Overall, the pound’s rally has far more to do with the ongoing decline of the dollar. The downtrend in the greenback looks set to continue now that the EURUSD has broken above significant technical resistance around 1.2100 while the Dollar Index is making fresh three-year lows.
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EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.