|

GBP/USD reaches a weekly low beneath 1.3750 on disappointing UK Retail Sales

  • GBP/USD prints a new weekly low at 1.3745.
  • Awful UK’s Retail Sales report fails to boost the British pound.
  • The greenback strengthened despite a fall in Consumer Sentiment.

GBP/USD is sliding in the American session to new weekly lows, trading at 1.3754, down 0.26% at the time of writing. As we approach the London Fix and head into the weekend, we could expect some downward pressure on the back of the dampened market sentiment. 

The market sentiment is downbeat. US stocks are losing ground, following the European trend, and bond yields rise as investors turn cautious on the global economic recovery amid worries about the Delta strain and risks from China.

UK Retail Sales disappoint the market

During the European session, the Office for National Statistics reported that Retail Sales shrank 0.9% in August, worse than the 2.5% gain (YoY) foreseen by economists. This negative data adds to concerns about economic recovery, albeit sales volumes remain above pre-pandemic levels.

Across the pond, the University of Michigan Consumer Sentiment rose to 71 in September, a tick lower than the 72.2 expected by analysts. Digging a little deeper on the report, buying conditions for homes, household durables, and vehicles fell. The report said that the declines were attributable to high prices. Consumers expect inflation to rise 4.7% in 2022.

Commenting on the data, Richard Curtin, Surveys of Consumers chief economist noted, "the steep August falloff in consumer sentiment ended in early September, but the small gain still meant that consumers expected the least favorable economic prospects in more than a decade."

Heading into the next week, the Federal Open Market Committee will meet to discuss monetary policy on September 21-22, followed by the Bank of England on September 23. 

Technical levels to watch

GBP/USD

Overview
Today last price1.3754
Today Daily Change-0.0040
Today Daily Change %-0.29
Today daily open1.3794
 
Trends
Daily SMA201.3782
Daily SMA501.3808
Daily SMA1001.3913
Daily SMA2001.3834
 
Levels
Previous Daily High1.3853
Previous Daily Low1.3765
Previous Weekly High1.3889
Previous Weekly Low1.3726
Previous Monthly High1.3958
Previous Monthly Low1.3602
Daily Fibonacci 38.2%1.3798
Daily Fibonacci 61.8%1.3819
Daily Pivot Point S11.3755
Daily Pivot Point S21.3716
Daily Pivot Point S31.3667
Daily Pivot Point R11.3843
Daily Pivot Point R21.3892
Daily Pivot Point R31.3931

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

EUR/USD holds above 1.1500 after ECB, US PPI

EUR/USD has come under fresh selling pressure and heads toward 1.1500 in Thursday's American trading. The European Central Bank delivered rate hikes as expected, while US wholesale inflation was higher than anticipated in May.

GBP/USD extends slide below 1.3350 on renewed USD demand

GBP/USD is falling below the 1.3350 level in the American session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, particularly after the Producer Price Index jumped to 6.5% YoY in May.

Gold challenges fresh 2025 lows below $4,100

Gold trades around $4,070 a troy ounce, dangerously approaching the psychological $4,000 mark. A softer Core US Consumer Price Index eased concerns about a runaway inflation spiral, but renewed concerns surged after the higher-than-anticipated May US PPI report.

Pi Network: Recovery at risk with 16 million PI tokens ready for unlock

Pi Network edges higher after three days of consecutive losses earlier this week, extending the prevailing downtrend since late April. The scheduled unlocking of 16 million PI tokens on Thursday could add pressure to the intraday recovery. Technically, PI remains under bearish pressure.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.