UK retail report helps sterling soar

The pound has gained ground versus the US dollar after stronger-than-expected UK realised sales data.

The CBI’s realised sales report – a barometer of high street trade – came in with a reading of 34 in September, a significant jump from August’s level of 27 and comfortably beating analysts’ estimates of 24.

The realised report covers 20,000 outlets, which make up a large component of the retail sales data, so the result is often a good indicator for the official UK retail sales. Dealers bought the pound after the announcement, as it‘s further proof that the UK economy is gaining momentum.

At 3pm (London time), the latest US new home sales are released, with economists estimating an increase of 28,000 on the month. If the report beats expectations, the pound may head towards the $1.60 level.

Last week’s Federal Reserve decision to keep US stimulus package at $85 billion per month has kept the US dollar under pressure, with traders on the lookout for any clues ahead of the Fed’s next meeting. With the US central bank’s members divided over when tapering should start, the new home sales report will be the latest indicator.

Spot FX GBP/USD (DFB) chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.