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Cable rebounds to 1.5488 after U.K. Retail Sales

Posted by Chris Advincula on Jun 20, 2013 6:44:00 AM

June 20 Thursday 10:50 GMT

LONDON – The pound made a modest recovery to 1.5488 from a low of 1.5413 (+75 points) in Europe after the sharp decline of 220 points yesterday from 1.5670 to 1.5450 in the prior New York session following the FOMC announcement and Ben Bernanke’s statement.

The highly anticipated news sparked much volatility in the market and dollar demand in speculation that U.S. policy makers could end QE measures next year and thus, pushed the dollar higher against the risk currencies. Stocks fell around the globe by as much as 1.75 percent.

Adding to risk aversion, were the lower-than-expected HSBC Purchasing Managers Index in China which came out as 48.3 in June from 49.2 in April.

The U.K. Retail Sales including fuel rose by +0.8% in May after -1.3% in April. The pound rose slightly from 1.5413 to 1.5470 after the release of the better than expected data.

The 21 day moving average rose from 1.5438 to 1.5460. The 60-day moving average rose slightly from 1.5440 to 1.5450.

 

Chris Advincula

WorldWideMarkets

 

gbp.6.20 resized 600

Chart: FXTrek.com

 

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