The GBP/USD pair is trading with a decrease at the end of the week, although the pound could have found support in the report on retail sales.
On Friday, the British Pound is trading on the downside in tandem with the US dollar. The current quotation of the instrument is 1.4279.
British retail sales in January rose sharply and touched two-year highs. The index gained 2.3% against expectations of growth of only 0.8%. A month earlier, retail sales in the UK fell by 1.4%, and the January report completely neglected this. Yearly, January retail sales rose by 5.2%.
The expectations of the influx of retail consumers on the background of post-Christmas sales paid off completely: Retail sales were dominated by the sector of clothing and footwear, and accessories. Food made half the contribution.
The fact the British are highly interested in retail with discounts perfectly illustrates consumer sentiment in the UK. Consumers are very careful, domestic demand is still balanced near zero change. At the same time, the country’s relatively good situation with the income of the population, could support retail sales, if not for the uncertainty with the future of the economy.
The Bank of England will certainly appreciate the retail sales figures positively. It should, however, be noted that the indicators in February and March, with a high degree of probability, will drive this positivity to zero.
RoboForex Analytical Department