{"id":111120,"date":"2017-08-17T09:20:41","date_gmt":"2017-08-17T13:20:41","guid":{"rendered":"http:\/\/countingpips.com\/?p=111120"},"modified":"2017-08-17T09:14:29","modified_gmt":"2017-08-17T13:14:29","slug":"uk-retail-sales-data-fails-to-pack-the-punch","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/uk-retail-sales-data-fails-to-pack-the-punch\/","title":{"rendered":"UK retail sales data fails to pack the punch"},"content":{"rendered":"
August 17, 2017<\/div>
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Article by ForexTime<\/a><\/p>\n

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Sterling bulls were hesitant to make an appearance during Thursday\u2019s trading session, despite U.K retail sales exceeding market estimates by rising 0.3% in July.<\/p>\n

July sales were largely driven by the biggest increase in food buying in almost two years, which offset a decline in the purchase of other goods. However, in annual terms, sales disappointed by growing just 1.3%, which was below the 1.6% expectations. What took the punch out the report and repelled bulls further, was the fact that June\u2019s retail sales were also revised down from 0.6% to 0.3%. Although the volume of goods sold in July printed above expectations, the total growth was relatively soft and highlighted how the gap between inflation and wages continues to squeeze household finances.<\/p>\n

It has certainly been another interesting trading week for Sterling, with bear\u2019s bent on winning the tug of war around 1.2850. The GBPUSD is under pressure on the daily charts with traders eyeing 1.2850. A breakdown and daily close below this level should encourage a further decline towards 1.2775.<\/p>\n

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Euro pressured following ECB minutes<\/strong><\/p>\n

The mighty Euro lost ground against a stronger Dollar on Thursday, after the European Central Bank minutes from July\u2019s meeting revealed concerns over the strength of the Euro.<\/p>\n

A stronger Euro poses a headache for European policy makers and dilutes the ECB\u2019s efforts to hit the golden 2% inflation target, by making exports less attractive and imports cheaper. The absence of a hawkish presence in the minutes, also compounded the downside, with the EURUSD trading around 1.1670 as at writing.<\/p>\n

Although encouraging macro-fundamentals from the European economy has supported the Euro, speculation around the central bank tapering QE, remains one of the key culprits behind Euro\u2019s resurgence. With the Euro becoming sensitive to monetary policy speculation, the currency is at risk of depreciating further against the Dollar if expectations of the central bank tapering QE, start to fade amid the inflation concerns.<\/p>\n

Commodity Spotlight \u2013 Gold<\/strong><\/p>\n

Gold bulls received a shot in the arm on Wednesday after July\u2019s dovish Federal Reserve minutes weighed on the prospects of higher US interest rates this year.<\/p>\n

The yellow metal was granted further support from the ongoing uncertainty revolving around President Donald Trump which bolstered its allure. With fading rate hike expectations punishing the Dollar and political drama in Washington stimulating risk aversion, Gold is likely to remain supported moving forward. From a technical standpoint, the yellow metal is bullish on the daily timeframe as there have been consistently higher highs and higher lows. The breakout above $1283 should encourage a further appreciation towards $1300.<\/p>\n

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Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime Sterling bulls were hesitant to make an appearance during Thursday\u2019s trading session, despite U.K retail sales exceeding market estimates by rising 0.3% in July. July sales were largely driven by the biggest increase in food buying in almost two years, which offset a decline in the purchase of other goods. However, in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-111120","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=111120"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111120\/revisions"}],"predecessor-version":[{"id":111122,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111120\/revisions\/111122"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=111120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=111120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=111120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}