GBP Rises As Yen Falls, Dollar Shakes Off Retail Sales
Login

GBP Rises As Yen Falls, Dollar Shakes Off Retail Sales

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:

Today, GBP takes the show, smashing through major resistance levels versus the Japanese Yen as well as a near-term low against the Euro. On solid retail sales, the dollar is attempting to strengthen against the Euro and Swiss Franc, but the movement is sluggish elsewhere. The selloff in the yen hasn’t changed, but it has accelerated. The Aussie and Kiwi are holding their ground and are on track to finish the week as the biggest winners.

The dollar index is hanging around 94.00 today after two days of losses; however, due to a weakening Japanese yen, the dollar/yen is headed quickly up towards a new three-year high around 114.20. Retail sales in the United States surprisingly increased by 0.7 percent in September, compared to an upwardly revised 0.9 percent the previous month. The Bank of Japan’s dovish stance and widening 2-year US-Japan rate differentials remain crucial considerations. Following good earnings reports, US futures are predicting another bullish day.

As it tries to gain traction above $1.1600, the single currency has remained heavy. GBP continues to outperform as the BoE lift-off date approaches, and a clean break over $1.3750 sets the ground for a challenge of the 200-day simple moving average (SMA) at $1.3545. Near 157.30, the pound/yen is flirting with a 44-month high. The US dollar is likely to have a correction within the longer-term upswing, given the Fed’s willingness to begin tapering soon.

The September consumer inflation data were worrisome. Although the PPI figures were lower than predicted, this does not indicate that inflation is no longer a problem. The Fed is not presently panicking like the Bank of England, but it is continuing slowly in eliminating accommodation in the hope of achieving eventual rate lift-off in the second half of 2022. Bullard and Williams will make public appearances today to discuss a variety of topics.

GBP Surge Accelerates, Putting Pressure on the US Dollar

The British pound climbed above 1.3750 on Friday, reaching 1.3775 for the first time since mid-September. The pair has gained approximately 0.65% in the greatest daily performance in the recent few weeks, and it is expected to conclude the week with a significant gain after gaining about 2.5 percent in October.

The GBP has risen for the second week in a row, boosted by a greater appetite for risk, which is harming the safe-haven dollar. The major stock indices are ending the week on a high note, bolstered by better-than-expected quarterly earnings in the financial sector, which have allayed concerns about rising prices and supply chain disruptions.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News