The UK’s most recent retail sales data surprised analysts by printing at 1% instead of the anticipated 0.4%, which led to an early strengthening of the British Pound on Friday. But Sterling soon pared its gains due to some profit-taking. Furthermore, it appears that concerns regarding the Labour government’s “painful” budget for next month have lowered demand for GBP. Investors in GBP will be concentrating on the most recent PMI data today.
Due to a dearth of Eurozone data, the common currency was directionless on Friday. But as sentiment on the world market worsened, the safer euro managed to hold onto some gains against its riskier competitors. This morning also sees the release of the Eurozone PMI surveys. Since the bloc’s private sector activity is predicted to have decreased this month, selling pressure on EUR may increase.
Following the Fed’s interest rate reduction last week, the US dollar stabilised after its recent declines. Nevertheless, total dollar losses were nevertheless contained since the Fed indicated that neutral rates will likewise be far higher than they have historically been. This week, the Fed is expected to provide more indications as numerous officials are scheduled to speak in the next few days.
Need to discuss your exchange rates or market strategies? Get in touch +44 (0)203 865 5780