The British pound is steady on Monday. In the North American session, GBP/USD is trading at 1.2445, up 0.05%.
US retail sales climb 0.7%
US consumers continue to shop and spend as March retail sales was stronger than expected. Retail sales rose 0.7% m/m, up from a revised 0.9% gain in February and above the market estimate of 0.3%. Consumer spending was strong across the board, with eight of thirteen categories recording increases. Retail sales excluding gasoline and motor vehicles and parts jumped 1%, up from a revised 0.6% in February and above the market estimate of 0.4%.
The solid retail sales numbers follows inflation and nonfarm payrolls, both of which were higher than expected. These strong numbers are a clear sign that the US economy remains on a roll and that could cause the Federal Reserve to hold off for longer on rate cuts.
The markets continue to slash expectations for a rate cut in response to these robust economic releases. A Fed rate cut in June or July are unlikely, and the probability of a September cut has dropped to 65%, down from 93% just one month ago, according to the CME FedWatch tool.
The UK releases employment data on Tuesday, and the Bank of England will be keeping a close eye on wage growth, a driver of inflation. Average earnings excluding bonuses dipped from 6.2% to 6.1% in the three months to January and the BoE will want to see wage growth reined in inflation is to be beaten.
The Bank of England meets next on May 9th and is expected to hold rates for a fifth straight time, but the BoE is divided about rate policy. Governor Bailey has said that rate cut expectations this year are “not unreasonable”, but Monetary Policy Committee members Megan Greene and Jonathan Haskel have said that rate cuts should be a long way off.
I-GBP / i-USD yezobuchwepheshe
- GBP/USD faces resistance at 1.2535 and 1.2620
- Kukhona usekelo ku-1.2481 naku-1.2396
Okuqukethwe okwezinjongo zolwazi olujwayelekile kuphela. Akusona iseluleko sokutshala izimali noma isixazululo sokuthenga noma ukuthengisa izibambiso. Imibono ngababhali; hhayi ngempela eye-OANDA Business Information & Services, Inc. nanoma yiziphi izinhlaka zayo, izinkampani ezingaphansi kwayo, izikhulu noma abaqondisi. Uma ungathanda ukukhiqiza kabusha noma ukusabalalisa kabusha noma yikuphi okuqukethwe okutholakala ku-MarketPulse, i-forex ewina umklomelo, impahla kanye nokuhlaziywa kwezinkomba zomhlaba jikelele kanye nensizakalo yesayithi yezindaba ekhiqizwe yi-OANDA Business Information & Services, Inc., sicela ufinyelele okuphakelayo kwe-RSS noma usithinte ku- [i-imeyili ivikelwe]. Vakashela https://www.marketpulse.com/ ukuze uthole okwengeziwe mayelana nokushaya kwezimakethe zomhlaba. © 2023 OANDA Business Information & Services Inc.
- I-SEO Powered Content & PR Distribution. Khuliswa Namuhla.
- I-PlatoData.Network Vertical Generative Ai. Zinike Amandla. Finyelela Lapha.
- I-PlatoAiStream. I-Web3 Intelligence. Ulwazi Lukhulisiwe. Finyelela Lapha.
- I-PlatoESG. Ikhabhoni, I-CleanTech, Amandla, Environment, Ilanga, Ukuphathwa Kwemfucuza. Finyelela Lapha.
- I-PlatoHealth. I-Biotech kanye ne-Clinical Trials Intelligence. Finyelela Lapha.
- Source: https://www.marketpulse.com/news-events/central-banks/gbp-usd-eyes-uk-employment-release/kfisher