GBP/USD Falters as UK Retail Sales Numbers Miss Across the Board

GBP/USD Falters as UK Retail Sales Numbers Miss Across the Board

February 17
15:17 2017

Talking Points

– UK spending in January fell below market expectations as higher fuel and food prices hit.

– Retail sales data remain notoriously volatile with revisions commonplace.

– See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for next week on the DailyFX Webinar Calendar.

The British Pound fell Friday morning after January UK retail sales data disappointed with the monthly numbers falling into negative territory. While the series is volatile and prone to revisions, the underlying trend paints a negative picture for GBP in the coming months.

In January retail sales grew by 1.5% y/y, against expectations of 3.4% and a prior month’s reading of 4.1%. On a monthly basis, sales fell by 0.3% compared to expectations of a 1.0% rise and December’s fall of 2.1%.

Commenting on today’s official retail figures, Kate Davies, ONS Senior Statistician said:“In the three months to January 2017, retail sales saw the first signs of a fall in the underlying trend since December 2013. We have seen falls in month-on-month seasonally adjusted retail sales, both in conventional stores and online, and the evidence suggests that increased prices in fuel and food are significant factors in this slowdown.”

Looking ahead, retail sales will need to rise in excess of 2% over the next two months in order to prevent retail sales dropping in Q1 and dragging on GDP growth.

According to Howard Archer at IHS Markit, “The economy’s persistent resilience since last June’s Brexit vote has been largely built on consumers keeping on spending. If consumers really are now beginning to moderate their spending, the long anticipated slowdownin the economy may be about to materialize.”

GBPUSD, already under downward pressure, slipped lower and looks likely to test the 1.23 handle shortly with Wednesday’s low of 1.23832 the first target.

Chart: GBPUSD 3-hour Time Frame (February 09 – 17, 2017).

About Author

Monalisha Biswal

Monalisha Biswal

Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment

More Posts From Below

How to Work With Forex

  • Make Money Online
  • Binary Options
  • Buy Stocks
  • ETF Trading
  • Bitcoin Trading
  • Indices Trading
  • Equities Trading
  • Commodities Trading
  • Top Brokers in the List

  • Forex Brokers
  • Stock Brokers
  • Binary Options Brokers
  • Managed Forex Accounts
  • Top 10 Forex Brokers
  • Top 10 Stock Brokers
  • Top 10 Binary Brokers
  • Forex Tips & Strategies

  • What Is Forex Trading
  • Open Forex Account
  • Trading Platforms
  • Social Trading
  • PAMM Account
  • Economic Calendar
  • Learn Forex
  • MT4
  • Expert CFDs Trading

  • What Is CFD Trading
  • CFD Brokers
  • CFD Markets
  • How To Start CFD Trading
  • CFD Strategies
  • CFD Trading Platform
  • Top 10 CFD Brokers
  • Learn Financial Spread Betting

  • What Is Spread Betting
  • Spread Betting Companies
  • Spread Betting vs CFD Trading
  • Top 10 Spread Betting Companies
  • About

  • Home
  • About Us
  • Advertise
  • Write For Us
  • Contact Us
  • Privacy
  • Terms