GBP/USD holds weaker below mid-1.1800s, moves little post-UK retail sales
- GBP/USD traded with a mild negative bias through the Asian session on Thursday.
- A slight disappointment from the UK retail sales data failed to provide any impetus.
- Thursday’s main focus will remain on the latest BoE monetary policy decision.
The GBP/USD pair held on to its mildly weaker tone below mid-1.1800s and had a rather muted reaction to the UK macro data.
According to the data released this Thursday, the UK monthly retail sales dropped 0.3% in February as compared to a modest growth of 0.2% expected. However, the fact that the data pertains to the period before the coronavirus crisis, it did little to provide any meaningful impetus.
Moreover, the UK government's measures to contain the coronavirus pandemic and persistent selling bias surrounding the US dollar continued lending some support to the major. The greenback remained depressed in the wake of the Fed's aggressive QE program announced this week.
This coupled with the optimism over a massive $2 trillion US stimulus package to avert a financial crisis boosted investors’ confidence, which exerted some additional downward pressure on the greenback's perceived safe-haven status against its British counterpart and remained supportive.
Meanwhile, investors also seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines ahead of the Bank of England's latest monetary policy decision, scheduled to be announced later during the European trading session.
Technical levels to watch