GBP/USD is ticking lower after retail sales came out very slightly lower than expected, with a rise of 0.2%. A rise of 0.3% was expected. After a week full of disappointing numbers, this small rise is some form of good news.
British retail sales jumped towards the Royal Wedding at the end of April, then plunged in May and later stabilized after the effect of this event was gone. Retail sales rose by 0.8% in June (revised from a rise of 0.7% initially reported).
The number of British jobless claims jumped in July by over 37K, the biggest rise in over two years. And while inflation is on the rise again, all the members of the MPC voted against a rate hike for a change. The BOE is now expected to move only in September 2012.
While British figures disappointed, the relative calm in the markets after a very volatile week sent the dollar generally lower. This helped the pound make gains, although these gains are limited.
GBP/USD traded at around 1.6540 before the release. It already managed to breach the 1.6550 line yesterday, but couldn’t hold on to it. Support is at 1.6470, followed by 1.64. Resistance above 1.6550 is at 1.6623.
For more about the pair, see the British pound forecast.
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