Sterling edges higher
Written by
Daily Currency Update
Yesterday morning, the CBI released UK retail sales data showing sales stabilised in March after ten months of decline. Retail sales volumes remained mostly unchanged in the year leading up to March. However, retailers anticipate a decline in sales for the upcoming month of April. In the afternoon, data revealed that the annual rate of new home sales in the US reached 662k, with a slight upward revision for the previous three months (664k). Both Bank of England's Mann and Federal Reserve Governor Cook delivered speeches that contained no surprises.During yesterday's session, GBP/USD gradually increased, bringing the currency pair back above the 1.2600 level and testing resistance at 1.2650. GBP/EUR remained within a narrow range, with the lows at 1.1655 and the highs at 1.1675. Similarly, EUR/USD followed the same upward trend as GBP/USD and is currently trading just below 1.0850.
Key Movers
The US will likely hold the macroeconomic headlines today as we await durable goods orders and consumer confidence data. Month-on-month goods orders are expected to see a sharp revision from the -0.4% seen in February to 0.4% in March. A small revision higher is expected in consumer confidence, with the previous coming in at 106.7 and 106.9 expected. It is the consumer confidence outcome that is more likely to have a play on USD volatility in the next 24 hours.Expected Ranges
- GBP/USD: 1.0590 - 1.0680 ▲
- GBP/EUR: 1.1640 - 1.1690 ▲
- GBP/AUD: 1.9270 - 1.9390 ▼
- EUR/USD: 1.0800 - 1.0890 ▲