US retail data to drive GBP/USD direction
Last night saw both George Osborne and Mark Carney deliver their Mansion House speeches. Governor Carney was never likely to give too much room for optimism about interest rate rises because of the current health of the economy and worries over the eurozone. Chancellor Osborne on the other hand introduced the concept of running a surplus budget, and this would infer increased austerity measures being brought into the UK economy.
This afternoon will see the latest US retail sales figures and it may give a better insight into the economy’s ability to handle an interest rate hike. At the moment, the congregation of moving averages just under the current spot price will give GBP/USD some natural support.