A positive surprise from the UK: retail sales rose 0.4%, defying expectations for a fall. Year over year, we have a rise of 4.3%, also beating predictions for a rise of 3%. Also sales ex-fuel surprised with a rise. It seems that Christmas shopping was quite strong.
GBP/USD is reacting positively, rising back to 1.4990. Can it retake 1.50? Not so fast apparently.
The United Kingdom was expected to report a drop of 0.6% in retail sales for the month of December after a jump of 1.6% in November (before revisions).
GBP/USD was trading on very low ground, at around 1.4960.
The British Monetary Policy Committee voted unanimously against raising the rates amid falling inflation. The big QE decision from the ECB eventually triggered a strong US dollar rally that sent GBP/USD below 1.50.
More:Â GBPCHF Forming A Breakout Pattern
