Pound Sterling steadies above 1.3450 following UK Retail Sales data

GBP/USD remains flat after UK Retail Sales rebounded 0.7% MoM in March, against a 0.2% growth expected.
US Dollar gains on safe-haven demand amid persistent uncertainty over the US–Iran conflict.
Lebanon seeks one-month ceasefire extension, though Israel’s ambassador says outcome “not 100%” certain.

Akhtar Faruqui FXStreet

GBP/USD steadies after three days of losses, trading around 1.3470 during the Asian hours on Friday. The pair stays calm following the release of United Kingdom (UK) Retail Sales data, which rebounded 0.7% month-over-month (MoM) in March after declining by a revised 0.6% in February. The market forecast was for a 0.2% growth in the reported month.

The annual UK Retail Sales rose 1.7% in March, slightly below the prior 1.8% (revised from 2.5%) but above expectations of 1.3%. Core Retail Sales, excluding auto fuel, increased 0.2% MoM, reversing a revised 0.6% decline (revised from -0.4%). On an annual basis, core Retail Sales grew 1.7% in March, down from February’s 2.7% (revised from 3.4%).

The GBP/USD pair may further depreciate as the US Dollar (USD) receives support from safe-haven demand amid persistent uncertainty surrounding the United States (US)–Iran conflict. The Guardian reported on Thursday that Lebanon will push for a one-month extension of the current ceasefire with Israel during a second round of direct talks in Washington. Israel’s Ambassador to the United Nations (UN), Danny Danon, said in a CNN News interview on Friday that the Lebanon ceasefire extension is "not 100%".

The US military intercepted two Iranian oil supertankers attempting to evade its blockade, as Washington presses ahead with efforts to curb Iran’s shipping. Meanwhile, Tehran continues to threaten vessels in the Strait of Hormuz. US military officials are also preparing contingency plans to target Iran’s capabilities in the Strait should the current ceasefire collapse.

(This story was corrected on April 24 at 08:27 GMT to say that UK Retail Sales were expected to grow 0.2% MoM in March, not 0.1%.)

Economic Indicator

Retail Sales (MoM)

The Retail Sales data, released by the Office for National Statistics on a monthly basis, measures the volume of sales of goods by retailers in Great Britain directly to end customers. Changes in Retail Sales are widely followed as an indicator of consumer spending. Percent changes reflect the rate of changes in such sales, with the MoM reading comparing sales volumes in the reference month with the previous month. Generally, a high reading is seen as bullish for the Pound Sterling (GBP), while a low reading is seen as bearish.

USD/JPY stays below 160.50 as markets assess BoJ decision

USD/JPY fluctuates in a relatively narrow range above 160.00 on Tuesday as markets assess the Bank of Japan's (BoJ) decision to raise the policy rate by 25 at the June meeting. Meanwhile, investors keep a close eye on news coming out of the Middle East, while preparing for the critical Fed meeting.

AUD/USD trades in tight channel near 0.7050 despite hawkish RBA message

AUD/USD trades modestly lower on the day at around 0.7050 on Tuesday as markets adopt a cautious stance amid a lack of details surrounding the US-Iran peace agreement. The Reserve Bank of Australia (RBA) left the door open for possible policy tightening after leaving the interest rate unchanged, as expected, at the June meeting but failed to boost the Australian Dollar.

Gold: $4,000 or $4,500? The Fed may decide Gold’s next big move

Gold now surrenders part of its initial advance and recedes to the vicinity of the $4,350 mark per troy ounce on Tuesday. The early enthusiasm sparked by the US-Iran peace deal has faded somewhat, prompting investors to adopt a more prudent stance as they await further details of the agreement and key guidance from the Fed.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it.

BoJ just hiked and US-Iran deal is on the table: Why Japanese Yen is still around 160.00

The Bank of Japan lifted interest rates from 0.75% to 1.00%, its highest level in more than three decades. The landmark move aims to stabilize a sharply weakening Japanese Yen, but by looking at the immediate market reaction, it doesn’t look like it’s going to work.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.