Article by ForexTime
Sterling is under performing on Tuesday following a worse than expected miss in UK RBC retail sales figure, which unexpectedly fell 0.4% year over year for the headline figure, which provided a backdrop for yields to move lower pushing the differential against the greenback in favor of the U.S. dollar.
Prices moved lower for a third consecutive trading session, after coming off resistance levels seen near the 20-day moving average at 1.5131. Support on cable is seen near the recent lows at 1.4905. Momentum on the currency pair is negative as the MACD (moving average convergence divergence) index prints in the red with a downward sloping trajectory that points to a lower exchange rate. The relative strength index (RSI) moved lower with price action reflecting accelerating negative momentum. The current print of the RSI is 40, which is on the lower end of the neutral range.
The UK’s BRC retail sales index disappointed in November, unexpectedly falling by 0.4% year over year in the headline same-store sales measure. Economists had forecast 0.5% year over year growth. The BRC said that the UK’s version of Black Friday was disappointing compared with the previous year. Tuesday’s report follows CBI’s retail sales survey from the same month, which also underwhelmed expectations. Sales had been robust over the September to October period, and the November lull might be a pause that refreshes into the holiday season.
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