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GBP Retail Sales

  • #1
  • First Post: Jan 21, 2007 3:10am Jan 21, 2007 3:10am
Why did GBP/USD go down when the GBP retail sales came out strong.
  • #2
  • Jan 21, 2007 5:34am Jan 21, 2007 5:34am
because of us consumer sentiment
  • #3
  • Jan 21, 2007 5:49am Jan 21, 2007 5:49am
I know i'm just repeating the last entry technically, but, basically its because the participants already expected these figures. The greater the likely-hood of their estimates being correct, the greater the chance that the projected move has already been integrated into the price in the days ( sometimes weeks) before the announcement. Generally in my experience its only when the predictions are wrong, that you get a large move. Sometimes you get a sharp spike as a confirmation of a news event that has only momenterially affected the market.

Hope that makes it a little clearer

SWTRADE
  • #4
  • Last Post: Jan 21, 2007 7:23pm Jan 21, 2007 7:23pm
Quoting SWTRADE
I know i'm just repeating the last entry technically, but, basically its because the participants already expected these figures. The greater the likely-hood of their estimates being correct, the greater the chance that the projected move has already been integrated into the price in the days ( sometimes weeks) before the announcement. Generally in my experience its only when the predictions are wrong, that you get a large move. Sometimes you get a sharp spike as a confirmation of a news event that has only momenterially affected the market.

Hope that makes it a little clearer

SWTRADE
I completely agree. It was already priced into the GBP, maybe if US consumer sentiment came out poor, then it would have been a different story. As well, it was Friday, a lot of traders just didn't have it to push the GBP to the 1.98 mark. As well after gaining over 2% the GBP needed to cool off.
I am Canadian!
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