Sterling falls on weak retail sales data.
The sterling under bearish pressure today as data showed retail sales recovered weakly in December after shops in England emerged from a November lockdown. Retail sales rose only 0.3% in December, much less than economist expectations of a 1.2% increase. The weaker than expected UK retail sales combined with the suggestion that schools may not open until April bodes poorly for the recovery in UK – adding to the bearish pressure on sterling. The pair is also dragged down by the dollar bullishness as the previous risk-on rally is taking a breather today after news of record number of covid-related deaths in Europe and USA darkened the prospects for economic recovery worldwide.
Expect sellers on upward corrections.
Next support to watch – 1.3618
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