Forex - GBP/USD gains on sales data, risk-on trading

Published 04/20/2012, 03:48 PM
GBP/USD
-
EUR/GBP
-
GBP/JPY
-
Investing.com - The pound strengthened against the dollar on Friday in wake of strong retail sales data out of the U.K. coupled with risk-on buying in markets worldwide, which sent the dollar falling amid demand most of the world's major currencies.

In U.S. trading on Friday, GBP/USD hit 1.6134, up 0.51%, up from a session low of 1.6038 and off from a high of 1.6143.

The pair was likely to find support at 1.5771, the low of March 22, and resistance at 1.6143, the earlier high.

Strong sales figures sent the pound firming.

In the U.K., monthly retail sales rose more than expected to a seasonally adjusted 1.8% in March, from -0.8% in the preceding month.

Yearly retail sales rose by 3.3%, which also drew applause from the markets.

The numbers sparked demand for the U.K. currency, especially in a global session that saw appetite for the greenback ease on positive indicators out of Europe.

In Europe, the German Ifo Business Climate Index for April rose to 109.9 from 109.8 the previous month, outpacing expectations for the figure to drop to 109.5.

April's figure represented a nine-month high.

Germany is Europe's largest economy and improving morale there bodes well for the continent.

Meanwhile, International Monetary Fund Managing Director Christine Lagarde said she expects member countries to contribute more to a financial firewall to contain the European debt crisis.
 
Good news in the U.K. and on the continent sparked a risk-on trading session that sent the dollar falling and pound rising.

The pound, meanwhile, was down against the euro and up against the yen, with EUR/GBP up 0.10% and trading at 0.8192 and GBP/JPY up 0.44% at 131.58.






Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.