MARKET UPDATES :
- Forex – Sterling up on retail data, hits 3-1/2 month highs vs. euro
- Forex – Dollar steady at 7-week highs on rate hike hopes
- Forex- Aussie, kiwi move lower vs. greenback after Fed minutes
EUR/USD is unchanged on Thursday, following sharp losses in the Wednesday session. The pair is trading at 1.1210 in the European session. On the release front, the ECB will release the minutes of its April policy meeting. In the US, there are two key releases. Philly Fed Manufacturing Index is expected to climb 3.2 points, while the forecast for Unemployment Claims is 276 thousand. The Federal Reserve minutes hinted that a June hike remains on the table, and EUR/USD responded with sharp losses of about 100 points. According to the minutes, the Fed wants to see stronger growth in Q2 as well as better numbers from the inflation and employment fronts. If this is achieved, the Fed said it “likely would be appropriate” to raise rates at the June meeting.
The pound extended early gains against the dollar and the euro on Thursday after data showing that U.K. retail sales jumped in April, despite a steep drop in clothing sales which may have been due to unseasonable weather.The Office for National Statistics said retail sales rose 1.3% in April, well above economists’ forecasts for an increase of 0.5%. March’s figures were revised to show a 0.5% drop, a much smaller decline than the initial estimate of a fall of 1.3%.Retail sales volumes were up 4.3% on a year over-year basis, the report said. Sales of most items surged, but clothing sales fell by 6.3% the ONS said, perhaps due to cold weather in April, which hit sales of summer clothes.GBP/USD was up 0.32% at 1.4645 from around 1.4626 ahead of the report.
- BUY GBP/USD ABOVE 1.4700 TGT 1.4720 1.4750 SL 1.4670
- SELL GBP/USD AROUND 1.4696-1.4693 TGT 1.4673 1.4643 SL 1.4726