UK Retail Sales decline

Thursday’s trading saw a tough day for pound as poor data signalled the end of the recent rally. Analysts were expecting a growth of 0.4% in March and a yearly figure at 5.4% however actual results saw a 0.5% contraction last month bringing down the annual growth to just 4.2%. Sterling has been on a good run for the last week or so and had peaked at month highs against many major currencies such as the USD and Euro. Analysts are now forecasting shortfalls on next week’s UK GDP figures for Q1 of 2016 which could further aid Sterling’s decline in the lead up to the election.

GBP/EUR was the biggest loser yesterday failing the 1.40 level again. The Euro-zone actually had a raft of PMI figures for manufacturing and services which were all worse than expected but the Euro shrugged off this data out performing all currencies yesterday as the dust settles and the Euro starts to claw some of its huge sell off earlier this year. With the elections nearing and the pound starting to falter, we could very well be in for a slippery few weeks or more for sterling exchange rates. Anyone in a position to do so may wish to consider taking advantage of the current high exchange rates whilst they are still available.

Today the focus switches to the US at 1:30pm with Durable Goods Orders data for March. After a couple of weeks of poorer data the USD will be looking for a boost to halt its recent decline.