Worse than expected Retail Sales in U.K pressure the Pound

A report this morning is showing retail sales in U.K dropped by -1.9% , much worse than the expected -0.3% , in the forex arena this translates to Pound downside pressure entering the first trading hours of the London session.

Generally, the market remains lucked in an anti-dollar environment, as we have yet to experience a serious retrace preformed by any of the major pairs yesterday. This might limit GBPUSD downside potential today.

As for EURUSD, the lower it could drop yesterday was 1.3414, which now marks its most important support area. The pair saw some high volatility around 12:00 GMT after U.S. Treasury Secretary Timothy Geithner’s commented on television he was open for changes concerning the status of the dollar as the world’s reserve currency. The volatile move ended with little change after Geithner repeated and said the dollar would keep its status as the top reserve currency for a long time.

Next important report today would be the U.S Unemployment Claims at 12:30GMT, a report which indicates the number of individuals who filed for unemployment insurance for the first time during the past week,
the forecast number is 649k.