Cable rallied to intra-day highs just shy of 2.0070 in early European trade, amid a rumour that annualized UK March retail sales growth might come in well above forecast, at 5.2%. Asian Central Bank demand at 2.0030/40 propped the pre-release pullback with a half-cent drop to intra-day lows just shy of 1.9990 ensuing after the data's 08:30GMT disclosure. Although annualized sales growth came in 0.1% above the 4.7% consensus forecast, there was disappointment that it had failed to match the pre-release rumour number.
Highs just shy of 2.0050 have been notched on the recovery rally from those pre-1.9990 lows. Resistance levels north of 2.0070/75 include 2.0100 and 2.0134 (Wednesday's 26-year peak). Exotic option barriers reside at 2.0150, 2.0175, 2.0200, 2.0250, 2.0300, 2.0450, 2.0500, 2.0700, 2.0750 and 2.0800+.
There is speculation that this weekend's Sunday Times may include a relatively dovish article from economics editor David Smith although a 25bp UK base rate rise to 5.5% next month is already a done deal. A US investment house touts August for a follow-up 25bp hike to 5.75%.
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