FX Daily Wrap Up

The GPD/JYP cross had a nice trending day. Great Britain produced a higher than expected BRC retail sales report, which helped move the pair higher in the early morning trading session to top out at 231.90. As mentioned in previous reports, the Pound is playing at the top of its game, meaning it is highly valued against major counterparts like the Euro, Yen, and US Dollar. This is a double-edged sword, however, as higher cost for British exports might price them out of some markets and result in a substantial risk for inflation. Today’s numbers are viewed as bullish for the Queen’s Money because retail sales came back higher than expected, with clothing and footwear in particular picking up before and after the Christmas holiday. The strong sales provide a reason for a possible Q1 rate hike by the Bank of England, but for the time being the good times continue to roll. The GPD/JYP trades at 231.50 heading into the Asian sessions. XPRESSTRADE Analyst David Hilgeman