AceTraderForex Oct 29 : Cable tumbles on weak U.K. retail sales data

[B]Market Review[/B] - 28/10/2013 [I]22:00GMT [/I]

[B]Cable tumbles on weak U.K. retail sales data[/B]

The British pound weakened on Monday after the release of CBI distributive trades, which came in at 2, much weaker than the economists’ forecast of 32. Moreover, Bank of England chief economist Spencer Dale said ‘option of expanding QE still on the table; tightening will be slower than in previous recovery.’

The British pound ratcheted higher from New Zealand’s low at 1.6162 and rose to a session high at 1.6208 in European morning. However, cable tanked to 1.6136 due to the release of much weaker-than-expected CBI distributives sales and then dropped to intra-day low of 1.6124 in New York morning.

The single currency traded narrowly during Asian trading and met selling interest below 1.3818 (Asia) in European morning. Euro later fell to intra-day low at 1.3775 in New York morning.

Versus Japanese yen, the greenback opened higher and rose to 97.78 in Australia before retreating to 97.44 in Asian session. However, dollar found support there and rebounded in European session. The pair later rose to a session high at 97.79 in New York morning.

In other news, president of the Eurogroup, Jeroen Dijsselbloem said ‘Spain has turned a corner; Spain is now on the road to recovery; don’t think ESM exit discussions will be very tough; balance sheets of Spanish banks have improved; banking union to be completed on schedule; not easy to regain pre-crisis growth rates; have to break open our labor markets; further reform of the labor markets is crucial.’ ECB’s Executive Board member Beniot Coeure said ‘Europe out of danger zone, must get act together.’

On the data front, U.K. Hometrack housing survey in October came in at 0.5% m/m n 3.1% y/y. U S. pending home sales in September came in at -5.6%, worse than the forecast of 0.0%.U.S. industrial production in September came in at 0.6% m/m, better than economists’ forecast of 0.4%. U.S. capacity utilization in September came in at 78.3%, stronger than the expectation of 78.0%, previous reading was revised to 77.9%.

[B]Data to be released on Tuesday: [/B]

Japan unemployment rate, household spending, retail sales, France consumer confidence, U.K. mortgage approvals, Halifax house prices, U.S. PPI, retail sales, Redbook retail sales, S & P/CS home price, consumer confidence, business inventories and Canada PPI.