Global indices on track for exceptional weekly gains
As risk sentiment continues to improve, global equities were on the rise once again. The FTSE is moving towards the close over 0.6% higher, its fourth straight day of gains, whilst also putting it on track for a 2.6% weekly gain, its best weekly performance in over a year.
The miners dominated the lower reaches of the FTSE, the mining sector being only sector to trade in the red. Meanwhile utilities and telecoms were standout performers. Support was also on hand for the index from a weaker pound, following worse than expected retail sales data.
Retail sales disappoints
Retail sales numbers were significantly worse than forecast, printing at 0.1%, as opposed to the 0.5% pencilled in, as consumers pulled their purse strings tighter. The disappointing read comes following a sharp decline in December’s figures and goes to show that the UK consumer can no longer be relied on to keep driving the economy forward whilst experiencing higher prices and lower wages in real terms.
Dollar stages recovery on strong data
US data continued to surprise to the upside, with US housing starts, building permits rebounding strongly after December’s slump and University of Michigan sentiment data smashing expectations. As a result, the dollar is enjoying a rare moment of demand up over 0.5% versus a basket of currencies as it looks to target 89.00
GBP/USD tumbles
A combination of weaker UK retail sales and stronger US data has resulted in GBP/USD falling from a high of $1.4145 towards $1.40. The pair remains above its bullish 20 sma and bounced off its first attempt to break $1.40, taking the pair back to $1.4035. A break below support at $1.4020 could see another attack on the psychological level of $1.40 before falling lower to $1.3970. On the upside, a break above resistance at $1.4080 could see the pair aim towards $1.4120 before $1.4150.
Wall Street to end on a high?
The recovery in the US shows no signs of faltering on the last trading day of the week. Despite stocks briefly turning lower on the open, a quick reversal has ensured that Wall Street is on track for a sixth straight winning session, and its best weekly performance since 2013.
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