Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.
    2021
    Best News & Analysis Provider
    FxDailyInfo
    2022
    Best Forex Educational Resources Global
    International Business Magazine

    GBP/JPY corrects from 189.00 as vulnerable UK Retail Sales ease inflation expectations

    Source Fxstreet
    Jan 19, 2024 14:18
    • GBP/JPY falls sharply from 189.00 as the Pound Sterling hit by weaker Retail Sales data.
    • Vulnerable UK consumer spending data has deepened recession fears.
    • Market participants shift focus towards the BoJ policy meeting.

    The GBP/JPY pair drops from fresh eight-year high of 189.00 in the early New York session. The cross faces pressure as the United Kingdom Retail Sales contracted sharply in December despite festive season.

    The Office for National Statistics (ONS) has reported that significant fall in sales at food stores and early Christmas shopping resulted in a sharper decline in the overall consumer spending. Meanwhile, higher consumer spending was also dented by deep cost-of-living crises due to higher interest rates and stubborn price pressures.

    Annual Retail Sales suffered a steep contraction of 2.4% while market participants projected a strong growth of 1.1%. A vulnerable consumer spending has renewed fears of a technical recession in the UK economy.

    Investors should note that the UK economy contracted by 0.1% in the third quarter of 2023 as per the revised estimates from the UK ONS. Latest projections from the Bank of England (BoE) indicated that the economy is not expected to show any growth in the final quarter of 2023. If the Q4 Gross Domestic Product (GDP) contracts, it would be right to state the UK economy in a technical recession.

    Going forward, it would be challenging for Bank of England (BoE) policymakers to retain restrictive monetary policy stance for ensuring a price stability or deliver a dovish decision due to dismal economic outlook.

    On the Japanese Yen front, market participants await Bank of Japan’s (BoJ) first monetary policy meeting, which is scheduled for Tuesday. The BoJ is unlikely to emphasize on exiting the decade-long ultra-loose monetary policy due to unfavorable Middle East tensions, easing consumer price inflation and slower wage growth.

     

    Disclaimer: For information purposes only. Past performance is not indicative of future results.
    placeholder
    USD/CHF picks up from 0.9075 support following Fed Golsbee’s commentsThe US Dollar has retraced previous losses, as news of an Israeli attack on Iran boosted the safe-haven CHF, to consolidate at previous ranges, above the 0.9075 resistance area.
    Source  Fxstreet
    The US Dollar has retraced previous losses, as news of an Israeli attack on Iran boosted the safe-haven CHF, to consolidate at previous ranges, above the 0.9075 resistance area.
    placeholder
    Strong risk of intervention to protect USD/JPY pushing through 155 – RabobankAnalysts at Rabobank share a brief outlook for the USD/JPY pair.
    Source  Fxstreet
    Analysts at Rabobank share a brief outlook for the USD/JPY pair.
    placeholder
    Forex Today: UK inflation data support Pound Sterling, US Dollar consolidates before FedspeakHere is what you need to know on Wednesday, April 17: The US Dollar holds steady against its major rivals after ending Tuesday on a bullish note.
    Source  Fxstreet
    Here is what you need to know on Wednesday, April 17: The US Dollar holds steady against its major rivals after ending Tuesday on a bullish note.
    goTop
    quote