The British pound depreciated sharply vis--vis the U.S. dollar today as cable tested bids around the US$ 1.9615 level and was capped around the $1.9790 level. Technically, todays intraday low was right around the 76.4% retracement of the move from $1.9360 to $2.0395. Data released in the U.K. today saw March consumer price inflation print at 2.5%, below expectations but above the central banks target. Traders reacted to the weaker-than-expected print by selling sterling on the premise there may be room for additional monetary easing by the Bank of England. Also, BRC reported March like-for-like retail sales were off 1.6% y/y, the first decline in two years. Additionally, RICS reported the March house price balance was at its worst level since 1978. The U.K. government noted February annual house price inflation decelerated to 6.7% from 8.0% in January. Collectively, todays data point to a decelerating U.K. economy. Cable bids are cited around the US$ 1.9605/ 1.9505 levels. The euro moved higher vis--vis the British pound as the single currency tested offers around the ₤0.8065 level and was supported around the ₤0.8000 figure.
Join the Discussion