Sterling Rallies on Strong Retail Sales as Yen Struggles
| Action Insight Mid-Day Report 9-20-24 |
Sterling Rallies on Strong Retail Sales as Yen Struggles |
Sterling climbed broadly today, fueled by unexpectedly strong UK retail sales data that more than compensated for the lackluster consumer confidence report. Despite ongoing high interest rates and persistent inflation, British consumers appear to be resilient, continuing to spend. This bolsters the position of hawkish members within the BoE's MPC, who may push harder for a measured, gradual approach to reducing interest rates. Looking at the broader market, Australian Dollar has maintained its position as the top performer for the week, driven by post-FOMC risk-on sentiment. However, with risk appetite fading as the weekend approaches, Sterling, currently in second place, has a real chance of overtaking the Aussie. Meanwhile, New Zealand Dollar follows closely as the third strongest currency this week. On the downside, Japanese Yen remains the weakest performer, extending its selloff after BoJ's decision to hold rates steady earlier today. The rise in US and European bond yields has further weighed on the Yen, as the growing yield differential makes it less attractive. Dollar and Swiss Franc are also under pressure, lacking the safe-haven appeal in the current risk-on environment. Euro and Canadian Dollar remain relatively mixed in the middle.... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.3188; (P) 1.3251; (R1) 1.3349; More... Intraday bias in GBP/USD remains on the upside for 61.8% projection of 1.2664 to 1.3265 from 1.3000 at 1.3371. Firm break there will pave the way to 100% projection at 1.3601 next. On the downside, below 1.3219 minor support will turn intraday bias neutral and bring consolidations first. But outlook will stay bullish as long as 1.3000 support holds. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:01 | GBP | GfK Consumer Confidence Sep | -20 | -13 | -13 | | 23:30 | JPY | CPI Y/Y Aug | 3.00% | 2.80% | | 23:30 | JPY | CPI Core Y/Y Aug | 2.80% | 2.80% | 2.70% | | 23:30 | JPY | CPI Core-Core Y/Y Aug | 2.00% | 1.90% | | 01:00 | CNY | 1-Y Loan Prime Rate | 3.35% | 3.35% | 3.35% | | 01:00 | CNY | 5-Y Loan Prime Rate | 3.85% | 3.85% | 3.85% | | 02:52 | JPY | BoJ Interest Rate Decision | 0.25% | 0.25% | 0.25% | | 06:00 | EUR | GermanyPPI M/M Aug | 0.20% | 0.00% | 0.20% | | 06:00 | EUR | GermanyPPI Y/Y Aug | -0.80% | -1.00% | -0.80% | | 06:00 | GBP | Retail Sales M/M Aug | 1.00% | 0.30% | 0.50% | 0.70% | | 06:00 | GBP | Public Sector Net Borrowing (GBP) Aug | 13.7B | 12.3B | 2.2B | 3.1B | | 12:30 | CAD | Retail Sales M/M Jul | 0.90% | 0.50% | -0.30% | -0.20% | | 12:30 | CAD | Retail Sales ex Autos M/M Jul | 0.40% | 0.20% | 0.30% | | 12:30 | CAD | Industrial Product Price M/M Aug | -0.80% | -0.30% | 0.00% | -0.10% | | 12:30 | CAD | Raw Material Price Index Aug | -3.10% | -2.00% | 0.70% | | 14:00 | EUR | Eurozone Consumer Confidence Sep P | -13 | -13 |
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