Pound (GBP) Exchange Rate Benefits from Positive CBI Retail Sales Report

Published: 28 Apr at 12 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany, India,

Pound (GBP)

The Pound (GBP) has continued to rise this week following the publication of the latest Confederation of British Industry (CBI) distributive trade index. The figure surged from -45 to 20 in April, buoying confidence in the UK’s retail sector.

Fraser McKevitt, the head of retail at Kantar, commented:

‘There is a growing sense that the worst of the pandemic is behind us, and people are becoming more comfortable with venturing out to the supermarket. The past four weeks have been the busiest in store for the grocers in more than a year.’

However, because of a lack of UK economic data today, the Pound exchange rate has begun to shed some of its gains.

Euro (EUR)

The Euro (EUR) has remained flat this week largely because of a lack of Eurozone economic data. This has left the single currency directionless as the European Union (EU) continues to tackle Europe’s Covid-19 crisis.

Today’s publication of the latest German GfK Consumer Confidence survey for May, however, has left EUR investors feeling more cautious about the Eurozone’s largest economy.
Rolf Buerkl, consumer expert at GfK, commented:

‘The recovery of the domestic economy will continue to lag due to the third wave.’

US Dollar (USD)

The US Dollar (USD) is muted today ahead of the Federal Reserve’s interest rate decision. The bank is expected to hold rates at 0.25%.

However, USD investors will be awaiting the Fed’s forward guidance. Any indications that the Fed could keep interest rates on hold for an extended period would be USD-negative.

The ‘Greenback’ has also struggled to gain ground today despite rising US Treasury yields.

Canadian Dollar (CAD)

The Canadian Dollar (AUD) has continued to struggle this week despite a modest rise in oil prices. Normally this would boost the oil-sensitive ‘Loonie’.

CAD traders are instead awaiting today’s publication of the latest Canadian retail sales data for February.

Any improvement in Canada’s retail sector could provide a boost for the Canadian Dollar exchange rate.

Australian Dollar (AUD)

The Australian Dollar (AUD) has continued to suffer today after Australia’s latest consumer price index fell below forecasts in the first quarter. The figure rose by 1.1% instead of the forecast 1.4% increase.

Rising cases of Covid-19 infections in India are also weighing on the appeal of the risk-sensitive ‘Aussie’.

New Zealand Dollar (NZD)

The risk-sensitive New Zealand Dollar (NZD) is also subdued today ahead of the US Federal Reserve interest rate decision. Any signs of the US economy struggling would be NZD-negative.

As of Wednesday, 28th April 2021, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1499, GBP USD exchange rate was 1.395, GBP AUD exchange rate was 1.7879, GBP NZD exchange rate was 1.9195, GBP CAD exchange rate was 1.7163, and GBP INR exchange rate was 103.6939.

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