In focus, today we have GBPUSD post UK retail sales data release and a rallying AUDUSD moved by employment change.
GBPUSD Post UK Retail Sales Data
The cable reacted positively to the UK sales data coming in higher than expected in October and showing an expansion of 0.3% in the month. On an annual basis, sales dropped 0.3%, less than initially estimated.
However, further figures showed overall sales excluding the Fuel component increasing 0.1% inter-month and contracting 0.3% annually.
These numbers were influenced by the ominous UK labour market prints reverting the disappointing inflation data on Tuesday. Meanwhile, GBPUSD seems to be extending its weekly upside after starting the week on the backfoot, in the 1.30615 low area.
Brexit talks and the rising political uncertainty dominating UK’s political environment at the moment weigh down on the Sterling, pushing GBPUSD to a close of 1.31901 on Thursday.
Governor M. Carney is due to speak today at the 2017 Bank of England Future Forum in Liverpool, joined by his peers Ben Broadbent, Jon Cunliffe and David Ramsden.
Broadbent took a rather hawkish stand fueling hopes that the central bank would potentially hike rates at least once in 2018
AUDUSD Rallies on Employment Change
Following a positive jobs report, AUDUSD moved away from the twilight zone, seeing an extension to the 0.75913 (open).
Although Australia’s unemployment rate dropped 5.4% in October pointing to a deceleration in job growth, the Aussie-greenback pair seems to have stabilised, mixed with the employment change arriving at +3.7k as against the expected 18.8k. The Aussie initially dipped against its buck counterpart down to 0.75694 (low) on that headline, but looking beyond that, the 5.4% figure beat the expected 5.5% unemployment rate, with full-time employment change coming in at +24.3k up 6.1k compared to prior results while part-time employment rate dropped 20.7k.
Currently AUDUSD hovers above 0.75875 levels.