Will the pound hold onto its gains after retail sales?
City Index April 23, 2015 2:24 PM
<p>An explosive day for the pound yesterday saw it rally 150 points on the back of all the BoE voters expecting the next move to be […]</p>
An explosive day for the pound yesterday saw it rally 150 points on the back of all the BoE voters expecting the next move to be a rate rise, eliminating any doubters in the market for the time being.
Today brings more attention to the pound with the main focus on the retail sales data, expected is a fall from 0.7% to 0.4%, if as expected could see the pound give up on some of this gain made from yesterday.
The Euro struggled to get going yesterday after reaching a high of 1.08 it soon came crashing back down to where we sit now just above 1.07, most of this was due to a strong pound pushing the EUR/GBP trade lower and a lack of information from the Eurozone.
Today the morning is full of PMIs and the mains ones are the French, German and the overall flash manufacturing. All are expecting to post slight better than before reads and could help push it back higher.
Unemployment claims are due out from the US as the main data from today expecting a fall to 288k from 294k could strengthen the USD going into the close of today.
Supports 1.0690-1.0650-1.0590 | Resistance 1.0780-1.0840-1.0875
Supports 119.50-119.10-118.90 | Resistance 120.15-120.40-120.80
Supports 1.4940-1.4840-1.4770 | Resistance 1.5010-1.5110-1.5180