FTSE 100 is doing better today, pound sterling had quite a good day yesterday reaching 3-weeks high

BRC report shows boost in sales over holiday season

Today's BRC report showed an increase in total sales for the month of December by 6.9% compared with a year earlier as the economy still contends with the cost of living crisis. While this marked a noticeable improvement from November's 4.2% growth rate, it is important to note that some of this could be a result of high inflation driving prices and compensating for lower volumes. In addition, while sales were boosted by events like the world cup and holiday season, it remains to be seen if this trend will persist in the coming months while some economists believe inflation may have peaked or may at least be approaching its peak. In either case, this could be considered a positive sign and bring some optimism in a difficult economic context. The FTSE100 started the day trading higher after yesterday's pullback and with several central bank speeches today, could attempt to break through yesterday's highs. Meanwhile, the Pound managed to reach a 3 week high yesterday against the USD which has been experiencing significant weakness and today's events could bring some additional volatility to the currency market. 

Read next: Damage to the crypto industry increased by almost a half in 2022 | FXMAG.COM

Oil prices may be on the verge of breaking through the consolidation area

Oil prices have managed to remain in the recent consolidation area after the prospects of an increase in demand from china supported higher valuations following a difficult start to 2023 which saw Brent drop over 10% from a high of $87 while WTI fell around 11% to reach a low of $72,44 before rebounding. In both cases it appears that the overall sentiment has improved and while traders await today's API inventory report from the US, it is possible that a surprise could cause a breakout from the recent sideways trading area. From a technical point of view, Oil.WTI is trading just below $75 and testing the 21SMA after breaking above the 8EMA on the hourly chart and while RSI still hovers around the 60 level, it appears that there might be still room for upside. On the other hand, a negative turn of events could swing sentiment in the other direction and cause an extension of the downward move.