GBP/USD falls a third day on dismal data, geopolitics - gonsalezfachather

GBP/USD continuing to slide on Friday, as the Sterling was pressured by the latest strand of sober macro information coming from the United Realm, while demand for traditional safe haven currencies such equally the United States Dollar accumulated due to escalating tensions between Beijing and Washington.

Earlier on Friday, UK retail sales were reported to have plummeted 18.1% in April compared to March, or at the steepest monthly rate on phonograph recording. April retail sales were 22.6% turn down compared to April 2022, following a 5.8% year-on-year knock off in Marching music. At the same time, retail sales, excluding fuel, decreased 15.2% in April compared to March, also at the sharpest monthly rate on record, UK's Office for National Statistics reported.

The latest information along with dismal UK CPI inflation Book of Numbers reported earlier this week, added to the prospects of negative pursuit rates being introduced away Bank of England to support the general-hit economy. More than 43,000 people in the UK sustain insofar died because of the COVID-19 illness, patc the identification number of confirmed cases surpassed 252,000, which has made the country the just about severely affected unitary in Europe.

"With the prospects of negative rates fully on the market's radio detection and ranging and in part priced in by the terminate of this year and for 2022, the next important hurdle for GBP should be the negative news-perio on the trade negotiations and apt no extension of the UK-EU modulation period," ING analysts wrote in a note to clients.

Meantime, connected the political science front, US President Trump out warned of a "very virile" The States reaction to new Chinese national security lawmaking on Hong Kong, which is seen as an attempt to step-up China's control over the former British colony and mightiness over again trigger affirmative-democracy protests. These developments contributed to the risk-off mood on global markets.

As of 11:38 GMT along Friday GBP/USD was losing 0.28% to trade at 1.2189, after touching an intraday low of 1.2162 during the after-hours phase of the European session.

In terms of worldly calendar, zero germane macroeconomic reports or other events are scheduled for today.

Bond Yield Spread

The spread between 2-year US and 2-year UK bond yields, which reflects the flow of funds in a short terminus, equaled 22.0 basis points (0.220%) atomic number 3 of 10:15 GMT on Fri. IT has remained short to the one-week high of May 21st.

The ease up on UK's 5-class government bonds dropped below zero for the first time yesterday, one day after the country sold its low attach with a disconfirming yield.

Daily Pivot Levels (traditional method of calculation)

Central Pivot – 1.2219
R1 – 1.2253
R2 – 1.2283
R3 – 1.2317
R4 – 1.2350

S1 – 1.2189
S2 – 1.2156
S3 – 1.2125
S4 – 1.2095

GBP/USD remained supported in the area around today's reduced of 1.2162, with the side by side possible support levels being the S3 pivot (1.2125) and the round 1.2100 level. Resistance may be due at the 20-period Exponential Moving Moderate (1.2202) and past, at today's high of 1.2234.

Writer: Miroslav Marinoff, a news editor at TradingPedia, is engaged with perceptive and reporting on the tendencies in the Exotic Commutation Market and the US Stock Market.

Source: https://www.tradingpedia.com/2020/05/22/forex-market-gbp-usd-retreats-for-a-third-straight-day-on-dismal-uk-retail-sales-data-elevated-us-china-tensions/

Posted by: gonsalezfachather.blogspot.com

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