Pound Sterling Price News and Forecast: GBP/USD struggles as UK retail sales drop sharply

FXStreet Team FXStreet

GBP/USD struggles as UK Retail Sales drop sharply – BBH

GBP/USD is trading heavy above key support at 1.3000. Disappointing UK economic activity and the expected fiscal drag from the upcoming UK budget leave room for the BOE to deliver more easing than is currently priced-in (63bps in the next 12 months). As such, we expect GBP to keep underperforming on the crosses, BBH FX analysts report.

"UK retail sales growth falls more than expected in October with retailers reporting that consumers held back in preparation for Black Friday discounts. Total retail sales volumes dropped -1.1% m/m (consensus: -0.2%) vs. 0.7% in September (revised up from 0.5%). Excluding auto fuel, retail sales volumes declined -1.0% m/m (consensus: -0.5%) vs. 0.7% in September (revised up from 0.6%)." Read more...

GBP/USD Forecast: Seems vulnerable amid BoE rate cut bets, ahead of UK budget next week

The GBP/USD pair trades with a positive bias for the second straight day on Friday, though it remains confined in the previous day's broader trading range, around the 1.3100 round figure during the early European session. The US Dollar (USD) moves away from its highest level since late May, touched in the aftermath of mostly upbeat US employment details on Thursday, and offers support to spot prices. However, the dismal UK macro data caps the British Pound (GBP) ahead of the UK budget announcement next week and acts as a headwind for the pair.

The US Bureau of Labor Statistics published the closely-watched Nonfarm Payrolls report on Thursday, which showed that the economy added 119K new jobs in September. The reading followed the 4K decrease (revised from +22K) recorded in August and surpassed the market expectation of 50K. Additional details revealed that Average Hourly Earnings held steady at 3.8% YoY, compared to the estimates of 3.7%, overshadowing an uptick in the Unemployment Rate from 4.3% to 4.4% and validating less dovish Federal Reserve (Fed) expectations. Read more...

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.