When are the UK retail sales and how could they affect GBP/USD?


UK Retail Sales Overview

The UK retail sales, scheduled to be published later this session at 0930 GMT, are expected to come in at 0.7% MoM in December, following -0.6% seen in November. Total retail sales are seen arriving at 2.6% over the year in the reported month, up from 1.0% booked previously.

Meanwhile, core retail sales, stripping the basket off motor fuel sales, are seen rebounding 0.5% MoM while rising sharply by 2.9% YoY.

Deviation impact on GBP/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 70 pips in deviations up to 3.5 to -1.5, although in some cases, if notable enough, can fuel movements of up to 100 pips.

How could it affect GBP/USD?

FXStreet’s Analyst Haresh Menghani notes: “From a technical perspective, the ongoing positive momentum now seems to have paused near a confluence resistance – comprising of 200-period SMA on the 4-hourly chart and the top end of a three-week-old descending trend-channel. A sustained strength above the mentioned barrier might now be seen as a key trigger for bullish traders and lift the pair beyond the 1.3100 handle, towards testing the next resistance near the 1.3165-70 region.”

“On the flip side, immediate support is now pegged near the 1.3055-50 region, which if broken might accelerate the slide back towards the key 1.30 psychological mark. Failure to defend the mentioned support, leading to a subsequent weakness below the 1.2985-80 region might turn the pair vulnerable to aim towards testing the trend-channel support (sub-1.2900 levels)”, Haresh adds.

At the press time, the Cable continues to trade in a familiar range around 1.3080, almost unchanged on the day. The upbeat Chinese data-led risk-on sentiment undermines the sentiment around the greenback across the board, in turn, lending support to GBP/USD.  

Key Notes

UK retail sales and US industrial production amongst market movers today – Danske Bank

GBP Futures: upside looks limited

BOE to keep rates on-hold this month but rate cut bets rise – Reuters poll

About the UK Retail Sales

The retail sales released by the Office for National Statistics (ONS) measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes in such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative or bearish.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD stable at around 1.1700, waiting for a fresh catalyst

The EUR/USD pair has spent most of the last trading session of the day stuck around 1.1700. Upbeat US Durable Goods Orders spurred modest demand for high-yielding assets.

EUR/USD News

GBP/USD hovers around 1.37. dismissing UK petrol crisis

GBP/USD is trading at around 1.37, as sterling shrugs off the drying up of some petrol stations due to Brexit-related lorry driver shortages.

GBP/USD News

Gold bulls not interested

Upbeat US data lifted the market’s mood and weighed on the dollar. US Treasury yields continue climbing to multi-month highs. XAU/USD is marginally higher on a daily basis but bears retain control.

Gold News

Shiba Inu stagnation period might result in 20% correction

Shibu Inu price continues to contract and cause frustration for bulls and bears. However, Shibu Inu is trading near the apex of the triangle pattern it is currently inside. Therefore, a breakout lower is likely to occur very soon.

Read more

Conference Board Consumer Confidence: Unhappy but still spending

Consumer Confidence expected to rise slightly to 114.5 in September. August’s confidence reading at 113.8 was the lowest since February. Weak Consumer Confidence did not damage August Retail Sales or Durable Goods Orders.

Read more

Forex MAJORS

Cryptocurrencies

Signatures