When is UK retail sales and how could affect GBP/USD?

UK retail sales Overview

The retail sales data is expected to rebound sharply to 1.0% m/m in April, while on annualized basis, retail sales are expected to rise to 2.0%. In March, retail sales were seen at -1.8% over the month. The report will be published later this session at 0830GMT.

Deviation impact on GBP/USD

 Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction is likely to remain confined between 10 and 70 pips in deviations up to 3.5 to -1.5, although in some cases, if notable enough, a deviation can fuel movements of upto 100 pips.

How could affect GBP/USD?

A solid retail sales report could help the GBP to regain footing on a sustained basis, allowing the rate to surpass 1.30 barrier. While a worse-than expected print would knock-off the pair back below 1.2900.

In terms of technicals, a break above 1.2992 (7-month high) could lift the pair above 1.3050 (psychological levels), beyond which a test of 1.3400 (round figure) is imminent. Conversely, a break below 1.2926/21 (5 & 20-DMA), leading to a subsequent break below 1.2872 (May 15 low) is likely to drag the pair towards testing its next support near 1.2842/29 (May 12 & 4 low).

Key notes

UK: Retail sales to post growth of 0.6% for April - TDS

UK retail sales and US jobless claims amongst market movers today – Danske Bank

About UK retail sales

The retail Sales released by the National Statistics measures the total receipts of retail stores. Monthly percent changes reflect the rate of changes of such sales. Changes in Retail Sales are widely followed as an indicator of consumer spending. Generally speaking, a high reading is seen as positive, or bullish for the GBP, while a low reading is seen as negative or bearish.