GBP/USD Forecast: Door opens to 1.3530 after dismal UK data
GBP/USD has lost its traction early Friday and declined below the key 1.3600 support area, attracting bears. The near-term technical outlook suggests that the pair could extend its slide ahead of the weekend and 1.3530 aligns as the next target on the downside.
Earlier in the session, the UK's Office for National Statistics reported that Retail Sales in December declined by 3.7% on a monthly basis. This print missed the market expectation for a decrease of 0.6% by a wide margin. Although GBP/USD's initial reaction to this print was largely muted, the UK's FTSE 100 opened deep in the negative territory and weighed on the pair. As of writing, the index was losing more than 1% on a daily basis. Read more...
GBP/USD Price Analysis: 100-day SMA/38.2% Fibo, confluence holds the key for bulls
The GBP/USD pair continued losing ground through the mid-European session and dropped to a near two-week low, around the 1.3555 regions in the last hour.
Against the backdrop of the UK political turmoil, dismal domestic data undermined the British pound and dragged the GBP/USD pair lower for the second successive day on Friday. This also marked the fifth day of a negative move in the previous six and seemed unaffected by moded US dollar weakness, weighed down by retreating US Treasury bond yields. Read more...
GBP/USD: Doubts over Boe hiking rates four times this year to pummel the pound – MUFG
The latest UK retail sales figures were disappointing. But some perspective is required. Some of this fall is undoubtedly linked to Omicron. Economists at MUFG Bank still expect the Bank of England (BoE) to hike rates in February but the aggressive pricing of four rate hikes in 2022 may end pounding the pound.
“The December Retail Sales report has just been released in the UK and the 3.7% drop MoM in overall sales was much larger than expected. The data followed GfK Consumer Confidence earlier today, which showed the index dropping from -15 to -19, the lowest since February 2021.” Read more...
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