GBP/USD rises on strong UK retail sales and USD/JPY drops amid falling Japanese inflation
Outlook on GBP/USD and USD/JPY amid lower volatility as the festive season approaches.
GBP/USD rises on stronger-than-expected UK retail sales
Stronger-than-expected UK retail sales helped GBP/USD rise towards the $1.2733 November high despite the final reading of quarter three (Q3) showing that the UK economy is on the brink of recession. It follows no growth in October (revised from a fall of 0.3%) and a final reading of Q3 which shows that the UK economy shrank by 0.1% from the previous quarter.
Support can be seen along the November-to-December uptrend line and at Thursday’s low at $1.2613 to $1.2596.
Resistance above the November high at $1.2733 sits at the current December high at $1.2794. If overcome, the 10 August high at $1.2819 would be eyed next.
USD/JPY drops towards five-month December low
USD/JPY's’s descent has taken it back below the 200-day simple moving average (SMA) at ¥142.72 as the Japanese inflation rate falls to a 16-month low.
The 7 December low at ¥141.63 represents the first downside target ahead of last week’s ¥140.95 five month low.
Resistance above the 200-day SMA at ¥142.72 can be seen at Wednesday’s ¥143.27 low.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
