Pound Mixed After U.K. Retail Sales Data
March 26 2015 - 7:42AM
RTTF2
The pound traded mixed against its major rivals in European
deals on Thursday, after the release of U.K. retail sales data in
February.
While the pound rose against the greenback and the yen after
better-than-expected retail sales data, it was lower against the
franc and the euro due to escalating conflict in Yemen.
British retail sales growth accelerated more than expected in
February, data from the Office for National Statistics showed.
Retail sales volume increased at a faster pace of 0.7 percent in
February from January, when it gained 0.1 percent. The monthly
growth exceeded a 0.4 percent increase forecast by economists.
Sales excluding auto fuel also increased 0.7 percent and
reversed January's 0.3 percent fall. It was forecast to rise by 0.4
percent.
On a yearly basis, retail sales including automotive fuel rose
5.7 percent in February, slower than a 5.9 percent rise seen in
January.
European stocks are trading in a negative territory, as Saudi
Arabia and other Gulf states began air strikes against Houthi
fighters in Yemen's capital. The Iran-backed rebels are reportedly
besieging Aden, the country's second largest city, but forces loyal
to the President say that they recaptured the city airport on
Thursday after heavy fighting with Houthi fighters.
The pound added 0.8 percent to hit a weekly high of 1.4993
against the dollar, from its previous low of 1.4871. If the
pound-dollar pair extends rise, it is likely to find resistance
around the 1.50 zone.
The pound bounced off to 177.52 against the yen, up by 0.6
percent from a new 7-week low of 176.47 hit at 2:45 am ET.
Extension of the pound's uptrend may take it to a resistance
surrounding the 180.00 zone.
Although the pound edged up to 0.7356 against the euro
immediately after the data, it fell back in a short while. The pair
was trading at 0.7380, compared to Wednesday's closing value of
0.7369.
German consumer confidence is set to improve in April, survey
data from the market research group GfK showed.
The forward-looking consumer sentiment index rose to 10 in April
from 9.7 points in March. The index was expected to rise marginally
to 9.8.
The pound moved down to a 2-day low of 1.4205 against the Swiss
franc, compared to 1.4275 hit at Wednesday's close. The pound is
seen finding support around the 1.40 mark.
In the New York session, U.S. weekly jobless claims for the week
ended March 21 and Markit's U.S. PMI reports for March are slated
for release.
At 9:00 am ET, U.S. Federal Reserve Bank of Atlanta President
Dennis Lockhart will deliver a speech about the economic outlook
and monetary policy at the Engage International Investment
Education Symposium, in Detroit.
Subsequently, European Central Bank president Mario Draghi will
address the Italian parliament's finance and EU policy committees
in Rome at 9:15 am ET. After 15 minutes, Bank of Canada Governor
Stephen Poloz is expected to speak at the Canada-UK Chamber of
Commerce, in London.
Swiss National Bank member Fritz Zurbrugg will deliver a speech
about monetary policy after the cap at the Money Market Event, in
Zurich at 1:00 pm ET. Half-an-hour later, Bank of England Governor
Mark Carney will hold a press conference about his role as Chair of
the Financial Stability Board, in Frankfurt.
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