Dollar Sell Off Continues

UK Retail Sales are in focus this morning. GBP/USD regained 1.41 and EUR/USD 1.25 as the USD sell off continued.

Previous Day's Market Highlights

The dollar was sold off again overnight, following mixed economic releases during the day. Industrial Production surprised to the downside, while the Producer Price Index rose, signalling rising price pressures. Sterling-dollar regained 1.41 and euro-dollar inched up to a new three-year high above 1.2550.
 
Sterling-euro continued to hold within the 1.12-1.13 range as it has for the past week, barring a test of 1.13 on Monday.

Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.1268 1.1512 1.1221 2.53%
GBP/USD 1.4117 1.4346 1.3763 4.06%
EUR/USD 1.2529 1.2556 1.2206 2.79%
GBP/AUD 1.7713 1.7861 1.7289 3.20%
GBP/NZD 1.9031 1.9466 1.8942 2.69%
GBP/CAD 1.7609 1.7646 1.7225 2.39%

Today's Market Highlights

The UK’s Retail Sales are in focus this morning as the next key release for the pound(09:30 GMT). Sterling could pick up if Sales increase more than forecast, a positive amidst concerns about slower Q1 growth, but the release could otherwise see sterling weakness.
 
In the afternoon, US housing data and Canadian Foreign Securities Purchases will be in focus (13:30 GMT). The US dollar will be in particular focus as the week draws to a close given its recent weakness.
 
Looking ahead to next week, highlights include UK wage and employment data on Wednesday, the next estimate of Q4 UK GDP, the Fed meeting minutes, the ECB meeting accounts, and final Eurozone CPI.

Today's Economic Calendar

Time Currency Release Consensus Previous
09:30 GBP Retail Sales MoM (Jan) 0.5% -1.5%
09:30 GBP Core Retail Sales MoM (Jan) 0.6% -1.6%
09:30 GBP Retail Sales YoY (Jan) 2.5% 1.4%
09:30 GBP Core Retail Sales YoY (Jan) 2.4% 1.3%
13:30 USD Housing Starts MoM (Jan) 1.234M 1.192M
13:30 USD Building Permits MoM (Jan) 1.300M 1.302M
13:30 CAD Foreign Securities Purchases (Dec) $19.18B $19.56B
15:00 USD Michigan Consumer Sentiment Index (Feb) 95.5 95.7

Caxton