At 10:30 markets got to know the results of the British retail sales. Readings were below market forecasts the growth compared with August turned out to be favourable.
Poor-good results
At first glance, the results of retail sales given by the British ONS proved to be far worse than what the market expected. In the first seconds of algorithms dragged the price of the Pound down:
- Retail Sales MoM – 0% vs. 0.4% previously -0.2%
- Retail Sales YoY – 4.1% vs. 4.8%, previously 6.2%
- Retail sales excluding fuel MoM – 0% vs. 0.4% previously -0.3%
- Retail sales excluding fuel YoY – 4%, forecast 4.5%, previous 5.9%
But when we look more closely we see that the retail sales month-on-month both including and excluding fuel were better than in August of this year (even though it is worse than the forecasts). The markets noticed that which led to a reversal of the situation and modest increases in GBP.
The situation on the pairs of pound
In terms of H1 GBPUSD continues to lose, but was able to return to the support 1.22710 (drawn on the tops of the session of 13 October). If the candle closes in this form, we will be looking for an opportunity to rebound:
EURGBP – visible consolidation channel drawn from Tuesday’s session (after stronger declines). It is worth noting that during the session on Tuesday, the lower limits coincides with pivot M2 and M3 ,PP runs in the middle of the channel.
