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Sterling cracks 1.5100 as UK Retail Sales plumment

FXstreet.com (Barcelona) - The Sterling finished sharply lower for a second straight day, closing down 108 pips to finish at 1.5042 which is the lowest close for the pair since mid March.

According to analysts at Rabobank, “Retail spending was weak in April, falling -1.3% in the month. The market had anticipated a rise of 0.1%. Weakness was centered in food store sales, which fell by 4.0% MoM. There’s some anecdotal reports that bad weather impacted this sector but we doubt it explains the entire weakness. Rather these data remind that UK consumers are still cautious. The second quarter has started on a down-beat tone and sales are tracking to fall -1.0% QoQ in 2Q as a whole after 1Q’s +0.4% QoQ gain. We await May and June data before the picture becomes convincing. But that’s how 2Q has started.”

According to Val Bednarik of FXStreet.com, "the GBP/USD maintained the bearish bias after BOE’s Minutes pointed for a possible assets purchase program extension up to £400B. In the 4 hours chart technical readings maintain a strong bearish momentum, pointing for a test of the 78.6% retracement of its latest bullish run at 1.4990. If this last gives up, there’s not much in the middle until 1.4830, March low. Recoveries are still seen as selling opportunities with 1.5130 as main resistance to watch.”

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