GBP/USD (current price: 1.2390)
Cable remained stable yesterday, as mostly positive economic reports were released in both countries. British Retail Sales came in much better than expected in October, with a monthly gain of 1.9%. Economists expected a rise of 0.5%, but the weakness of the Pound helped a stronger expansion. U.S. Building Permits also beat the consensus estimate, with an annualized figure of 1.23 million. The U.S. CPI Index came in at 0.4%, in line with expectations, while the Philly Fed Manufacturing Index was a negative surprise with a reading of 7.6.
Our assessment: The cross stuck below the 1.25 level, but above the strong support line near 1.2350. The Pound remains the strongest currency in the face of the broad Dollar rally.
