Published: 19/05/2022 By ECAP
Volatility is the key word this week as we see GBPUSD trade at either end of the trading range, struggling to really hold any middle ground. The pair tested the 1.25 levels but failed to hold its head above the key level on Tuesday, followed by then sitting around the lows of 1.2330 during yesterdays trading session. Today does see a little bit of respite however, with the pairing sitting around the 1.24 level with no further UK data due today, eyes now focus onto retail sales month on month due tomorrow, where forecasts sit at -0.3%, so any figure to the upside or in positive territory will surely give the pound some strength.We have seen the UK CBI data this morning surpass expectations from a forecast number of 11 to post an actual number of 26, showing a growing number shows orders are in a state of expansion, which has given some modest support to the pound today.
Despite the souring in risk appetite, the dollar still remains sluggish as it falls against a basket of currencies. Investors will be looking towards the unemployment claims data due for release this afternoon, forecast to be largely in-line with last weeks figures, any deviance from that figure will create some further movement in the greenback.