A disappointment from the UK: the volume of retail sales fell 0.3% in September, contrary to expectations for a smaller slide. Year over year, a rise of 2.7% was reported, lower than 2.9% expected. In addition, the BBA mortgage approvals number fell below 40K, below expectations.
GBP/USD is losing 1.60 but not going very far.
The volume of retail sales was expected to slide by 0.1% in the UK in September after a rise of 0.4% in August (before revisions).
GBP/USD traded around 1.6030 towards the publication, staying in the low range.
Yesterday, the pound was hit hard by some concerns expressed by the members of the Monetary Policy Committee. Carney and co. are worried about the euro-zone and its impact on the UK.
1.60 serves as support, followed by 1.5910. Resistance awaits at 1.6075, followed by 1.6150. For more, see the GBPUSD forecast.
The big event of the week is tomorrow’s first release of GDP growth for the third quarter of 2014. A quarterly growth rate of 0.7% is expected – slower than 0.9% in Q2.
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