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HISTORICAL DETAILS
% Change
1 Wk 1.03%
1 Month 1.42%
3 Months -1.20%
6 Months 1.87%
1 Year 7.48%
52 WEEK
High 1.6747
Low 1.51258
BLOOMBERG MEDIAN FORECASTS
Q2 2011 1.63
Q3 2011 1.61
Q4 2011 1.63
Q1 2012 1.62
DAILY DETAIL
Sterling climbed strongly overnight on the back of a sharp pickup in risk appetite, following news of the EU bailout package for Greece. This sent risk currencies like EUR/USD and AUD/USD soaring, in turn dragging cable along for the ride. It rallied from a low of 1.6119 to close at a session high of 1.6330 (a move of more than 200 points), as UK retail sales also came in stronger-than-expected. Retail sales, including fuel, advanced 0.7% compared to estimates for a 0.6% rise. The strength was mainly attributed to the early start of summer sales, as retailers offered discounts to lure customers into their stores. While this is positive, we’ll need to see a few more strong numbers before talk of a spending recovery starts. From a technical perspective, sterling broke out through short-term downtrend channel resistance, which is typically seen as a bullish sign. There’s likely to be selling pressure around current levels, and then around the 1.64 figure. With nothing on the economic calendar this evening, sentiment is going to be driven by how EUR/USD trades following last night’s developments. Ben Potter, Australia
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