17 Jan 2014
EUR/GBP maintains short-term bearish momentum
FXstreet.com (London) - EUR/GBP has continued to drift lower towards the latter part of the session on short-term bearish momentum.
Huge leap in retail numbers
The UK posted much stronger than expected retail figures, up 2.6 percent month-on-month against consensus expectations of a 0.3 percent rise. Year-on-year retail sales rose 5.3 percent against consensus expectations of 2.5 percent. The biggest upside came from department stores, contributing an 8.7 percent rise compared to a 3.3 percent drop in November.
Clothing sales were the weakest element of the sales figures, adding only 0.1 percent. However, the Christmas season showed a lower level of discounting than previously.
Positive momentum for jobs numbers
All in all, the retail numbers showed strong momentum and consumer confidence which bodes well for upcoming UK jobs numbers released next week which are expected to show a further decline in the unemployment rate from 7.4 to 7.3 percent.
With little to disrupt momentum, the EUR/GBP pair is likely to carry its bearish trend into the weekend.
EUR/GBP is currently trading at GBP0.8257, picking up slightly from session lows at GBP0.8249 but remains down 0.83 percent on the day.
Huge leap in retail numbers
The UK posted much stronger than expected retail figures, up 2.6 percent month-on-month against consensus expectations of a 0.3 percent rise. Year-on-year retail sales rose 5.3 percent against consensus expectations of 2.5 percent. The biggest upside came from department stores, contributing an 8.7 percent rise compared to a 3.3 percent drop in November.
Clothing sales were the weakest element of the sales figures, adding only 0.1 percent. However, the Christmas season showed a lower level of discounting than previously.
Positive momentum for jobs numbers
All in all, the retail numbers showed strong momentum and consumer confidence which bodes well for upcoming UK jobs numbers released next week which are expected to show a further decline in the unemployment rate from 7.4 to 7.3 percent.
With little to disrupt momentum, the EUR/GBP pair is likely to carry its bearish trend into the weekend.
EUR/GBP is currently trading at GBP0.8257, picking up slightly from session lows at GBP0.8249 but remains down 0.83 percent on the day.