The pound pulled back from lows against the broadly stronger dollar on Thursday after data showed that U.K. retail sales were higher for a second month in June. GBP/USD pulled back from 1.5158, the session low, to hit 1.5200 during European morning trade, still down 0.08% for the day. Cable was likely to find support at 1.5077, Wednesday’s low and resistance at 1.5266, Wednesday’s high. The Office for National Statistics said retail sales rose 0.2% in June, in line with expectations. Retail sales were 2.2% higher compared to the same month last year, above expectations for a 1.7% gain. Core retail sales, which exclude automobile sales, rose 0.2% in June, in line with forecasts, after increasing 2.1% in May. Demand for the dollar continued to be underpinned by expectations that the Federal Reserve will start to unwind its bond buying later this year following comments by Chairman Ben Bernanke on Wednesday. In his semi-annual testimony to Congress Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.” Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future. Earlier Wednesday, the minutes of the Bank of England’s July meeting showed that policymakers voted unanimously to keep the bank’s quantitative easing program unchanged, ahead of a decision on whether to start giving forward guidance on interest rates from next month. Two policymakers who had previously voted in favor of more stimulus said it remained "warranted". Sterling was little changed against the euro, with EUR/GBP inching up 0.05% to 0.8630. The U.S. was to release the weekly government report on initial jobless claims and data on the Philly Fed manufacturing index later in the trading day.
Posted on: Thu, 18 Jul 2013 09:20:17 +0000
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