Pound Sterling – UK Markets Yesterday’s dismal mortgage approvals and consumer credit data highlighted the lingering weakness in the UK’s financial system and indicated that downside risks still persist despite the recent set of upbeat economic data. This led Sterling to trade on a weaker footing against the US Dollar and the Euro in yesterday’s trading session. However, despite simmering inflationary woes, the CBI report released yesterday indicated that retail sales in the UK surpassed market consensus for July and rose at its fastest pace since January 2013, bolstered by warm weather and heavy discounts, supporting the UK Chancellor’s recent claim that Britain is now on the mend. In today’s trading session, the Pound is trading in a tight range against the majors, as market participants seem to have adopted a cautious stance ahead of the outcome of major central bank meetings this week. On account of a light day ahead, news flows emanating from Europe and the US are expected to determine the near term trend for the Pound. Meanwhile, with the CBI retail sales data surprising on the upside, the Gfk confidence report due overnight is expected to gain increased market attention for gauging consumer morale in the nation.
Posted on: Tue, 30 Jul 2013 10:39:16 +0000
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