© Dukascopy Bank SA
The second very popular currency pair among traders, the Cable, showed a pure negative performance during the previous week, despite strong bullish outlook of Dukascopy members. During the first day of the observed period, the GBP/USD pair traded with no major changes, however, the fear of growing UK inflation pushed the pair down from 1.45 to 1.43. Earlier in the day, CPI inflation in the UK dropped from 0.1% to -0.8% month-on-month in the preceding month, while the yearly gauge increased to 0.3% from 0.2% . Moreover, according to the Office for National Statistics the core measure decreased to 1.2% from 1.4% in December. Moreover, in the middle of the week, on Thursday, European leaders gathered in Brussels on to begin final negotiations on a deal to help prevent the United Kingdom from exiting the European Union. Prime Minister David Cameron is expected to call a referendum on whether the UK should remain in or leave the EU. It is widely expected that the referendum will take place on 23 June. On Friday, the British Cable pared its earlier losses against the Greenback on Friday afternoon amid a busy trading session filled with strongly upbeat UK retail sales. Retail sales rose a robust 2.3% in January versus December, nearly tripling expectations for a 0.8% rise. The rise was the 33rd consecutive month of retail sales growth, the longest period of growth since the 2008 financial crisis.
This week is considered to bring some important economic data, namely the UK Gross Domestic Product as well as the US GDP, which can influence the following pair's perspectives. Despite that, keeping in mind the 78% bullish sentiment last week, now Dukascopy Community members are almost equally divided on the nearest future development of this currency pair. The median forecast is located slightly below the 1.44 mark for Friday of this week.
© Dukascopy Bank SA