Breaking News

Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here

Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Pound Stems Bleeding, Retail Sales Next

By MarketPulse (Kenny Fisher)ForexMay 19, 2022 06:38AM ET

www.investing.com/analysis/pound-stems-bleeding-retail-sales-next-200624564

By MarketPulse (Kenny Fisher) | May 19, 2022 06:38AM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

The British pound reversed directions on Thursday, after sliding 1.22% a day earlier. GBP/USD was trading at 1.2402 in the European session, up 0.50% on the day.

The UK releases retail sales on Friday, with an estimate of -0.2%, which would mark a third successive decline.

Red-hot inflation gets hotter

UK inflation continues to accelerate, and the April CPI of 9.0% unnerved investors and sent the pound tumbling lower. CPI jumped from 7.0% in March, and the only sliver of good news was that the reading was lower than the forecast of 9.1%.

Core CPI rose to 6.2%, up from 5.7%, indicating that inflationary pressures are broad-based. This means that the cost of living crisis isn’t going away anytime soon. In fact, it could get worse, with the BoE forecasting that the inflation could top 10% later this year.

The BoE finds itself playing catch-up with the inflation curve and has been heavily criticized for assuming inflation was transient and not tightening earlier.

The same criticism can be levelled at the Federal Reserve, but the Fed has responded with super-size 50-bps increases, while the BoE has opted for modest 25-bps hikes.

Brexit tensions are back in the form of the Northern Ireland protocol, which is exacerbating inflationary pressures.

With no sign of an ‘inflation peak,’ businesses and consumers are in a sour mood and pressure is mounting on the BoE to be more aggressive with its tightening.

The BoE has defended its policy, saying that the Ukraine war and other factors driving inflation are beyond the Bank’s control. That may be true, but the markets are looking to the BoE to right the listing ship and get a handle on inflation.

Bailey & Co. are understandably hesitant to implement 50-bps hikes, out of concern that this will stall the economy and cause a recession. I don’t envy the BoE policy makers, who must find the right pace of hikes which will lower inflation while guiding the economy to a soft landing.

GBP/USD Daily Chart

GBP/USD Technical

GBP/USD is testing resistance at 1.2393. Above, there is resistance at 1.2525
There is support at 1.2275 and 1.2143

Original Post

Add a Comment

Euro Slides As Inflation Jumps By Kenny Fisher - Jul 01, 2022

The EUR/USD is sharply lower on Friday and is currently trading just above the 1.04 line, down 0.76%. Eurozone inflation outperforms Eurozone CPI for June was higher than...

USD/JPY: Rally Running On Fumes? By Craig Erlam - Jul 01, 2022 1

OANDA Senior Market Analyst Craig Erlam talks about USD/JPY as the rally once again loses momentum.

EUR/USD: Bulls Looking For Strong Entry Bar For Double Bottom By Al Brooks - Jul 01, 2022 1

EUR/USD bulls got a strong reversal bar following the June 13 bear close test and the June 15 low. Yesterday was also the third reversal up from the 2017 low since May, which...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

More Categories

1D1W1M6M1Y5YMax

US 30	31,078.0	+302.6	+0.98%
US 500	3,824.4	+39.0	+1.03%
Dow Jones	31,097.26	+321.83	+1.05%
S&P 500	3,825.33	+39.95	+1.06%
Nasdaq	11,127.84	+99.11	+0.90%
S&P 500 VIX	26.70	-2.01	-7.00%
Dollar Index	104.880	+0.416	+0.40%

Crude Oil WTI	108.46	+2.70	+2.55%
Brent Oil	111.48	+2.45	+2.25%
Natural Gas	5.620	+0.196	+3.61%
Gold	1,812.90	+5.60	+0.31%
Silver	19.823	-0.529	-2.60%
Copper	3.6138	-0.0962	-2.59%
US Soybeans	1,510.50	-48.50	-3.11%

SPDR S&P 500	381.24	+3.99	+1.06%
iShares Russell 2000	171.41	+2.05	+1.21%
Invesco QQQ Trust	282.13	+1.85	+0.66%
Direxion Daily Junior Gold Miners Bull 2X Shares	35.44	+1.98	+5.92%
iShares Silver	18.31	-0.33	-1.77%
ProShares Ultra VIX Short-Term Futures	13.99	-0.54	-3.72%
ProShares UltraPro QQQ	24.39	+0.39	+1.62%

Apple	138.93	+2.21	+1.62%
Alphabet A	2,174.75	-4.51	-0.21%
Tesla	681.79	+8.37	+1.24%
Amazon.com	109.56	+3.35	+3.15%
Netflix	179.95	+5.08	+2.90%
Meta Platforms	160.03	-1.22	-0.76%
Bank of America	31.56	+0.43	+1.38%

	Interest Rates	Next Meeting
FED	1.75%	Jul 27, 2022
ECB	0.00%	Jul 21, 2022
BOE	1.25%	Aug 04, 2022
SNB	-0.25%	Sep 22, 2022
RBA	0.85%	Jul 05, 2022
BOC	1.50%	Jul 13, 2022
RBNZ	2.00%	Jul 13, 2022
BOJ	-0.10%	Jul 21, 2022
CBR	9.50%	Jul 22, 2022
RBI	4.90%	Aug 04, 2022
PBOC	3.70%
BCB	13.25%	Aug 03, 2022

Pound Stems Bleeding, Retail Sales Next

Red-hot inflation gets hotter

Related Articles