Yesterday was further proof that no matter what you think you know there is every possibility that it’s wrong. UK retail sales figures were forecast to fall by 0.1% as the market anticipated tighter spending as oil prices hurt the pocket of the average consumer. The unexpected 3.5% jump shocked sterling higher to 1 week tops against the dollar and euro. This has raised further speculation that the next MPC meeting will see an interest rate hike.

Dollar was not helped yesterday by the publishing of a poor Philly Fed index reading and stronger oil prices. Crude rose as supply concerns once again weighed after an attack by a Nigerian rebel group on a series of oil platforms in the Niger Delta.

There is very little data today and as such FX markets will be looking towards commodity, credit and equity markets for direction and we anticipate a fairly sideways day.

Have a good weekend.

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Disclaimer: The above comments are only our views and should not be construed as advice. You should act using your own information and judgement. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice.

Any rates given are “interbank” i.e. for amounts of £5million and thus are not indicative of rates offered by World First for smaller amounts. E&OE. Definitions of jargon/market terms can be found in our Glossary of Foreign Exchange Terms.