Pound Drops As U.K. Retail Sales Fall More Than Forecast
19 Gennaio 2018 - 06:28AM
RTTF2
The pound weakened against its major opponents in early European
deals on Friday, after a data showed that U.K. retail sales
declined more than expected in December.
Data from the Office for National Statistics showed that retail
sales volume dropped by more-than-expected 1.5 percent in December
from November, when it grew 1 percent. Economists had forecast a 1
percent fall.
Similarly, sales excluding auto fuel decreased 1.6 percent, in
contrast to November's 1.1 percent increase. Sales were expected to
fall 1 percent.
Meanwhile, European shares rose as optimism about economic
growth and corporate earnings helped investors shrug off concerns
about a potential U.S. government shutdown.
The pound dropped against its major rivals in the Asian session,
with the exception of the greenback.
Having advanced to 0.8802 against the euro at 5:00 pm ET, the
pound reversed direction and edged down to 0.8827. The next
possible support for the pound is seen around the 0.90 mark.
Data from the European Central Bank showed that the euro area
current account surplus increased in November after falling for two
straight months.
The current account surplus rose to EUR 32.5 billion from EUR
30.3 billion in October.
Pulling away from an early high of 1.3329 against the franc, the
pound declined to a 2-day low of 1.3284. Continuation of the
pound's downtrend may see it challenging support around the 1.28
area.
Figures from the Federal Statistical Office showed that
Switzerland's producer and import prices increased at a steady pace
in December.
Producer and import prices climbed 1.8 percent year-on-year, the
same rate as seen in November.
The pound reversed from an early high of 154.41 against the yen,
edging down to 153.79. If the pound falls further, 152.00 is likely
seen as its next support level.
On the flip side, the pound extended rise to a 2-day high of
1.3945 against the greenback. On the upside, 1.44 is possibly seen
as the next resistance for the pound.
Looking ahead, Canada manufacturing sales for November and
University of Michigan's preliminary consumer sentiment index for
January are set for release in the New York session.
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