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 Markets Limited. 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. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
