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Fri 28 Jul 2017 07:35 GMT

Pound Strengthens After Upbeat Retail Sales

Published: 23 Mar at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,

Sterling

The Pound (EUR) drifted higher against most of its peers today following the release of the UK’s latest Retail Sales figures.

Data compiled by the ONS showed that sales surged from -0.5% to 1.4% in February, sailing past initial forecasts that sales would only show 0.4% growth.

However Sterling was forced to cede some of its gains by the afternoon as economists warned that first quarter growth was still likely be negatively impacted by the poor start to the year.

Euro

The Pound Euro (EUR) exchange rate pushed higher during Thursday’s trading session as markets reacted positively to the UK’s sales data.

The single currency’s decline was also prompted by weakening Consumer Confidence in Germany, as inflationary pressures caused households to predict that their finances would be tighter next month.

However the Euro may be able to recoup some of its losses later this evening as the drop in Germany was not enough to derail Eurozone sentiment as confidence rose from -6.2 to -5 in March.

US Dollar

Sterling strengthened against the US Dollar (USD) today as markets remained focused on Trump’s healthcare bill.

The American Healthcare Act (AHCA) bill will be the first real test of Trump’s legislative ability, with the ‘Greenback’ likely to fall it congress votes against it as it could prompt USD investors to question his ability to pass his proposed tax reforms and stimulus package.

The drop in the US Dollar also comes despite unexpectedly robust housing data as US New Home Sales rocketed from 5.3% to 6.1% in February, beating expectations that sales would only grow 0.7%.

Canadian Dollar

The UK’s impressive retail sales data also prompted the Pound to rise against the Canadian Dollar (CAD) on Thursday as it suggested that the British households were not as perturbed by the onset of Brexit as analysts had initially predicted.

Meanwhile the continued pressure on oil prices prevented the ‘Loonie’ from rallying this afternoon despite Canada’s Budget Balance printing its first surplus since April.

Australian Dollar

The Pound Australian Dollar (AUD) Exchange rate soared around a cent higher today as the uptick from positive UK data was magnified by weakened iron ore prices.

Iron ore tumbled a further 3% overnight on Wednesday causing prices to fall below $85 a tonne for the first time in over a month as demand for Australia’s largest export mirrored a decline in the Chinese steel market.

New Zealand Dollar

Sterling jumped around half a cent against the New Zealand Dollar (NZD) today as markets shrugged off some of their Brexit jitters in light of significant retail sales growth in the UK.
As of Thursday, 23rd March 2017, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1607, GBP USD exchange rate was 1.2517, GBP AUD exchange rate was 1.6398, GBP NZD exchange rate was 1.7809, GBP CAD exchange rate was 1.6709, and GBP CNY exchange rate was 8.6192.
Dominic Lee About Author: (267 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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