GBPUSD Ticks Higher Despite Mixed Data

Daily Forex Fundamentals | Written by DailyFX | Oct 23 08 09:14 GMT |

U.K. September retail sales yet again came in better than expected falling just 0.4% m/m, compared to our survey median for a 0.6% drop and after a 1.1% August increase (revised from 1.2%). Meanwhile, however, the annual rate came in weaker than expected, rising 1.8% y/y versus a median estimate for 2.2% and down from 3.3% in August. This was indeed the softest y/y reading since February 2006, but ONS data still stands in contrast to survey data which suggests depressed consumer confidence and falling disposable income are having a real impact on the retail sector. Meanwhile, Pound traded on a supportive footing after it rebounded out of its Asian session lows as the Nikkei pared its sharp opening losses to end the session 2.46% in the red. European indices are relatively stable after they recovered opening losses, which encouraged GBP-JPY and GBP-CHF demand on dips, with the former around 159.00 and the latter above 1.9000 after hitting lows of 156.95 and 1.8805 respectively. Meanwhile, U.K. retail sales fell 0.4% m/m in September, which was better than expected. Meanwhile, net mortgage lending rose GBP 3.6 bln in September versus GBP 2.1 bln in August, while September mortgage approvals were down 56% year-on-year. Cable is hovering around 1.6300 after the releases, while EUR-GBP maintains its support ahead of 0.7850. The outlook for sterling remains negative, although there are signs that the market is pausing for breath after the sharp losses seen since Monday. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.