Up next on the economic calendar are the UK retail sales. Retail sales are usually important for any currency so today´s report is important. However, it takes extra importance since it is was presented a couple of days after another important report disappointed.
The UK average hourly earnings (wages/salaries) for the last quarter of 2016 showed a 2 point decline from the previous month and that got everyone worried that Brexit might be catching up.
Now we get to see the retail sales. GBP/USD is already down, but that´s mostly an USD move. Retail sales are also quite volatile so we might get worked up for nothing. Nevertheless, if the downside is too great, then watch for GBP bulls to start running for their lives.
They are expected to be around 1%, coming from a 2% decline in the previous month. I think that anything with a deviation of more than 2 points will have some considerable impact on GBP pairs. Well, let´s see.