GBP/USD slides despite strong retail sales in the United Kingdom, where the dominance of the United States prevails
- Surprise of retail in the UK retail, but it fails to raise the pound.
- American consumer feelings sharply decrease; Inflation expectations rise to the highest level in several years.
- Markets digest mixed trade signals with China’s tariff exemptions on American goods.
The British pound records losses against the strong US dollar, yet it remains above 1.3300. The powerful retail sales report in the UK failed to support the cable, which records 0.20 % losses such as GBP/USD Trade at 1.3311.
GBP/USD is more than 1,3300 amid the United States’ weak feelings, hot inflation expectations, and continuous tariff drama
Financial market novel has not changed, as traders focused on US President Donald Trump’s commercial policies and China’s response to definitions. Although economic data has taken the back seat, the deterioration in the morale of consumer in the United States and the UK solid retail transactions report prevented GBP/USD from a decrease of less than 1.33.
Bloomberg stated that China may exempt some American goods from tariffs with high costs. The news was agreed by the markets, with the improvement of feelings of risks, but it was short -term.
Data from the University of Michigan (UOM) revealed that consumer morale in April decreased to its lowest level, from 57 to 52.2, which is the fourth less reading in the data series dating back to the late 1970s. The same poll revealed that inflation for one year increased from 5 % to 6.5 % and an increase of five years to 4.4 % from 4.1 %.
Earlier, retail sales in the UK increased unexpectedly, and revealed ONS. March sales increased by 0.4 %, a decrease from 0.7 %, exceeding contraction -0.4 % ruptures. Meanwhile, the merchants are the words of the Bank of England, Megan Green, who said, “We are not sure whether the weakness in the British economy is the result of demand or supply.”
She added that the labor market has weakened very slowly and that the central bank sees the output gap open, which may help reduce inflation.
GBP/USD price expectations: Technical expectations
GBP/USD remains biased to the top but it seems ready to break the main support at 1.3300 in the short term. The RSI Index (RSI) explains that sellers collect steam even though the relative strength index is still upward. However, the failure of buyers to break the 1.3400 decisively has exacerbated the GBP/USD towards the main support levels.
The next support for the husband will be the simple moving average for 50 days (SMA) at 1.3238, followed by 1.3200. On the contrary, if the buyers pay GBP/USD after 1.3350, expect to re -test 1.34.
British pound price this week
The table below shows the percentage of change in the British pound (GBP) against the main currencies listed this week. The British pound was the strongest against the Swiss franc.
| US dollar | euro | GBP | JPY | CAD | Aud | Nzd | Chf | |
|---|---|---|---|---|---|---|---|---|
| US dollar | 0.26 % | -0.10 % | 1.28 % | 0.03 % | -16 % | -57 % | 1.60 % | |
| euro | -26 % | -52 % | 0.97 % | -0.28 % | -62 % | -0.87 % | 1.31 % | |
| GBP | 0.10 % | 0.52 % | 1.67 % | 0.26 % | -0.10 % | -0.35 % | 1.84 % | |
| JPY | -1.28 % | -0.97 % | 1.67 % | 1.19 % | -1.54 % | -1.70 % | 0.36 % | |
| CAD | -0.03 % | 0.28 % | -26 % | 1.19 % | -0.32 % | -61 % | 1.59 % | |
| Aud | 0.16 % | 0.62 % | 0.10 % | 1.54 % | 0.32 % | -0.24 % | 1.94 % | |
| Nzd | 0.57 % | 0.87 % | 0.35 % | 1.70 % | 0.61 % | 0.24 % | 2.22 % | |
| Chf | -1.60 % | -1.31 % | -1.84 % | -0.36 % | -1.59 % | -1.94 % | -2.22 % |
The heat map shows the percentage changes in the main currencies against each other. The basic currency is chosen from the left column, while the quotation currency is chosen from the top row. For example, if you choose the British pound from the left column and move along the horizontal line to the US dollar, the percentage offered in the box will represent the GBP (Base)/USD (quotation).
