The USD rally continued yesterday, GBP traded markedly lower against USD having performed relatively better compared to the other G10 currencies, said analysts at Lloyds Bank.
US retail sales may attract some interest this afternoon; however even on a downside surprise we doubt it will materially impact current market optimism towards the USD. We think the USD upside bias will continue although the pace may slow as we approach key levels, they noted.
For EUR/USD, the 1.05 area could provide some initial support, while for GBP/USD the 1.4800/50 area is a focus (lows seen in 2013). For EUR/GBP, the 0.70 area is likely to provide good support.
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