Forex Trading News – UK retail Sales boost Sterling’s gains

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Forex Trading News - UK retail Sales boost Sterling’s gainsThe Euro this session has been trading around its 55-day average of around 1.4260, a point at which it appears to have struggled to break past and which has seen the Euro make a double bottom around the 1.4205 levels as can be viewed from the hourly chart. The recent break through below the 55 day moving average, experienced on the 9th of May is the first time since mid February that the single currency has dropped below this moving average, following the EURUSD’s rally of over 14 cents in the space of 3 months. Market participants are looking once again to take long positions in the Euro; however they are quite cautious following what the implications of a possible Greek debt restructuring may mean for the Euro. The Euro is currently trading around 1.4271, following a dip of some 60 pips in mid European session which saw it drop to a low of 1.4205, as it remains with an upward trend on the hourly chart.

 

Better than expected Retail sales data boosted the Sterling today pushing the GBPUSD from a level of 1.6150 to spike as high as 1.6188 within minutes of its release. The economic indicator for the month of April showed that the retail sales percentage increase was at 2.8% – higher than the expected outcome of 2.5%. The spike was limited though as many investors saw the rise as a good opportunity to sell at a better price for the Sterling, a move that was not unexpected given the recent downtrend of the GBP against the USD. The Sterling went on to rise against the Dollar in latter European session, peaking at 1.6207. Resistance for the GBP is seen at 1.6215, a level which denotes the 61.8% Fibonacci retracement level of the British pound’s drop on the 18th of May.

 

The EURGBP dropped gradually in today’s European session by some 30+ pips as the positive retail sales data saw the Sterling gain against the Euro. The pair opened up the session at 0.8825 and went on to drop to a daily low of 0.8791 where it found support as it closed in on the 55 hourly average as well as previous peak levels which were reached on the 10th, 11th and 13th of this month. The EURGBP pair did promptly recover following the UK announcement, as investors sought better opportunities to sell the Sterling but soon after gradually dropped back down towards the day’s low.

 

The Swiss Franc dropped against the Dollar in today’s European session as the USDCHF peaked to reach a level of 0.8860. Against the Euro the Swiss Franc was little influenced, with risk appetite being capped with ongoing concerns with regards to the Greece debt crisis.

 

EURUSD EURGBP GBPUSD USDCHF EURCHF
OPEN

(06:00 GMT)

1.4259 0.8825 1.6154 0.8805 1.2558
DAY’S HIGH 1.4305 0.8838 1.6207 0.8876 1.2627
DAY’S LOW 1.4205 0.8791 1.6129 0.8764 1.2532
CLOSE

(13:00 GMT)

1.4233 0.8811 1.6151 0.8870 1.2627